At each value of the domestic interest rate, decreases in the riskiness of domestic assets ________ capital inflows, ________ capital outflows, and ________ net capital inflows.
A. increase; decrease; increase
B. decrease; decrease; decrease
C. increase; increase; increase
D. increase; increase; decrease
Answer: A
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The marginal revenue product (MRP) is the:
a. value of the additional output that an extra unit of a resource can produce. b. cost of hiring an additional unit of a resource. c. extra cost of producing an additional unit of output. d. increase in total output when an additional unit of an input is hired. e. change in total revenue when an additional unit of a good is sold.
The number of people willing to buy tickets to the Super Bowl is invariably greater than the number of tickets (and seats) available. This is evidence that the price of the tickets is
What will be an ideal response?
If elasticity of demand is 0.2, elasticity of supply is 0.5, and a 10 percent excise tax is levied on the good:
A. the tax burden on consumers will be greater. B. the tax burden on suppliers will be greater. C. the tax burden will be the same for both. D. one cannot say who will bear the greater burden without knowing the tax.
What are the three types of monetary policy lags?
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