If input prices fall, it will lower the cost of production, causing the supply curve to shift to the right
a. True
b. False
Indicate whether the statement is true or false
True
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Monetary policy can have substantial effects on the economy even when nominal interest rates are very low
A) since real rates are what affects borrowing and spending decisions. B) by improving borrower and bank balance sheets. C) by reducing transactions costs. D) only when the policy is substantial.
Assume that corn and cloth are each produced using both land and labor in a country. Corn is relatively land-intensive. If the country experiences an increase in its endowment of labor, product prices remaining unchanged, the Rybczynski theorem predicts that the production of corn will decline.
Answer the following statement true (T) or false (F)
Macroeconomic equilibrium occurs when
A. the quantity of output demanded equals the quantity of output supplied. B. the price level is increasing. C. the price level is decreasing. D. there is very low cyclical unemployment.
Ethics codes in corporate life tend to emphasize (a) compliance with laws and regulations, (b) honesty and integrity, and (c) avoidance of conflicts of interests. Which one is the most important in today's world? How does economics help in understanding its importance?
What will be an ideal response?