An increase in the budget deficit causes domestic interest rates
a. and investment to rise.
b. to rise and investment to fall.
c. to fall and investment to rise.
d. and investment to fall.
b
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Which of the following experiments will yield observations that would allow one to calculate the marginal physical product of labor?
A. Increase the number of lumberjacks with chain saws and observe the change in output of cut trees B. Increase the number of workers on an assembly line and record the change in output C. Increase the number of data entry operators and computers and calculate the extra output. D. Check the number of workers before and after a given time period.
According to the factor price equalization theorem, the ________ factor should oppose free trade policies in any given country
A) abundant B) scarce C) neither D) Can't tell without more information
A technological breakthrough lowers the cost of manufacturing DVDs. As a result, the market changes to a new equilibrium because of a(n):
a. upward movement along the demand curve for DVDs. b. rightward shift in the demand curve for DVDs. c. rightward shift in the supply curve for DVDs. d. shortage of DVDs.
The economist Joseph Schumpeter argued that industrial concentration, in which a relatively small number of firms control the market place, actually ________ the rate of ________.
A. increased; technological advance B. decreased; technological advance C. decreased; market competitiveness D. increased; market competitiveness