If the marginal revenue product of land is less than its price, a firm should
A. use more land.
B. try to increase the productivity of land.
C. use less land.
D. increase the price it is willing to pay for land.
Answer: C
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Capital flight
A) increases reserves. B) is never associated with the expectation of devaluation. C) may undo expected devaluation. D) reduces losses during a devaluation scare. E) decreases reserves and may induce devaluation.
A consumer values a car at $525,00 . and a producer values the same car at $485,000 . If the transaction is completed at $510,000 . the transaction will generate:
a. No surplus b. $25,00 . worth of seller surplus and unknown amount of buyer surplus c. $15,00 . worth of buyer surplus and $25,00 . of seller surplus d. $25,00 . worth of buyer surplus and unknown amount of seller surplus
If the price level rises, the aggregate expenditure curve shifts downward and the economy moves up the aggregate demand curve
Indicate whether the statement is true or false
Briefly and concisely define the following terms and explain their relevance to the study of economics
a. industrial and craft unions b. closed shop c. union shop d. bilateral monopoly e. collective-bargaining agreement