If currency depreciates:
a. net exports rise and the aggregate demand curve shifts inward
b. net exports rise and the aggregate demand curve shifts outward
c. net exports fall and the aggregate demand curve shifts inward
d. net exports fall and the aggregate demand curve shifts outward
b
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An increase in foreign investment in Brazil's mining industry will increase the capital stock in Brazil. All else equal, as the capital stock increases, the marginal product of capital (MPK) will
A) increase due to diminishing marginal returns. B) decrease due to diminishing marginal returns. C) increase since capital is not subject to diminishing marginal returns. D) decrease since capital is not subject to diminishing marginal returns.
The per capita real GDP is the
A) rate of growth in real GDP plus the population growth rate. B) real GDP divided by the population. C) rate of growth in real GDP times the population growth rate. D) rate of growth in real GDP minus the population growth rate.
This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.According to the figure, MiiTunes:
A. does not have a dominant strategy. B. has a dominant strategy to charge low prices. C. has more than one dominant strategy. D. has a dominant strategy to charge high prices.
In Figure 6.6 if price is P1, then the industry will:
A. expand. B. contract. C. stay the same size. D. merge.