For any constant returns production function, the isoquants for Q = 1, Q = 2, Q = 3, etc. will
A. be equally spaced, in that the distance between Q = 1 and Q = 2 is the same as Q = 2 and Q = 3, etc.
B. all be inversely proportional to the inputs.
C. be straight lines.
D. exhibit diminishing returns in the long run.
Answer: A
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If a corporation earns a profit, how do owners of the firm share in the profit?
A) by selling any bonds or stocks owned and realizing a capital gain B) by raising the interest rate on bonds C) through coupon payments on that firm's bonds D) through dividend payments on shares of that firm's stock
For a perfectly competitive? firm, the? firm-specific demand curve is ___________
Fill in the blank(s) with the appropriate word(s)
International variables are linked through trade and financial flows. Therefore, what trilemma is faced by a nation that wishes to keep its exchange rates with other nations fixed?
a. It can have fixed exchange rates only when it allows free flows of capital and maintains control of its interest rates. b. It cannot have fixed exchange rates if it does not restrict foreign investment and also wants to control its own monetary policy. c. Fixed exchange rates are not possible if the nation allows free flows of capital both into and out of the nation. d. Fixed exchange rates are not possible if the nation also wants to control its monetary policy.
When a domestic monopolist becomes subject to international competition, it faces:
a. a perfectly inelastic demand curve. b. a unitary elastic demand curve. c. a perfectly elastic demand curve. d. no demand curve.