Which of the following observations will be valid, if major trading partners of the United States experience an economic slowdown?
a. There will be an increase in U.S. exports to them
b. U.S. aggregate demand will not be affected
c. U.S. net exports will decrease
d. aggregate demand will shift to the right
c
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In what way does long-run equilibrium under monopolistic competition differ from long-run equilibrium under perfect competition?
A) Firms in perfect competition achieve allocative efficiency while firms in monopolistic competition achieve brand efficiency. B) Firms in perfect competition achieve productive and allocative efficiency while firms in monopolistic competition achieve neither allocative nor productive efficiency. C) The only difference is that in a monopolistically competitive market there are many brands to choose from while in a perfectly competitive market there is one standard product. D) Firms in perfect competition achieve productive efficiency while firms in monopolistic competition achieve allocative efficiency.
For a wheat farmer, the following factor(s) are uncontrollable
a. Quality of the wheat b. Weather c. The speed at which the product reaches its buyers d. All of the above
A fall in the real interest rate leads to
a. an increase in the rental rate on a machine. b. a decrease in the rental rate on a machine. c. no change in the rental rate on a machine. d. a fall in the marginal productivity of capital.
The desire to hold money instead of other assets in anticipation of changes in economic conditions is the ________ motive.
Fill in the blank(s) with the appropriate word(s).