Which of the following is an interest rate effect that would most likely cause a decrease in the quantity of real GDP demanded in the nation, ceteris paribus?
a. The overall price level falls in Canada, which increases interest rates and increases investment spending.
b. The overall price level rises in Finland, which increases interest rates and reduces investment spending.
c. The overall price level falls in India, which decreases interest rates, and discourages investment spending.
d. The overall price level rises in Brazil, which decreases interest rates and encourages investment spending.
b. The overall price level rises in Finland, which increases interest rates and reduces investment spending.
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Which of the following CANNOT be a source of comparative advantage?
A) Climate B) Resource stock available C) Education of workforce D) Domestic prices of goods and services
The figure above shows a firm in a perfectly competitive market. If the price rises from P3 to P4 then output will increase by
A) 0 units. B) 1 unit. C) 2 units. D) 3 units.
The following is NOT an example of a potential monitoring solution to moral hazard
a. blocking social network sites on company computers b. closed circuit TVs throughout a warehouse c. requiring a kitchen remodeling contractor to be 'bonded' d. listening in on call center conversations
If a firm is a price taker, then it can
a. sell below the market price and increase its economic profit b. sell all it wants at the market price c. sell above the market price and increase its economic profit d. supply the entire market e. choose its own price