Whenever the marginal product of a firm's only variable input was positive, but falling:
a. its total product is growing at a decreasing rate
b. it will use more of the variable input until its marginal product is negative.
c. it would reduce its use of the variable input.
d. its total product is beyond its maximum.
a
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If the Federal Reserve wishes to increase the money supply by $30,000 and the reserve requirement ratio is 0.4, how big a purchase of bonds will the Fed need to make?
a. $75,000 b. $12,000 c. $1,000 d. $30,000 e. $3,000
Which of the following is a key assumption in factor price insensitivity in response to a fall in FDI?
a. Technology is changing in the capital-intensive sector. b. Technology is changing in the laborintensive sector. c. Prices are changing for the capitalintensive good. d. None of these is a key assumption.
Keynes believed equilibrium income was:
A. not fixed at the economy's potential income. B. always below the economy's potential income. C. fixed at the economy's potential income. D. always above the economy's potential income.
If a consumer is choosing the optimal combinations of two goods X and Y, and then the price of good Y decreases, this causes:
A. MU/P of good X to increase, so the consumer now must buy more X to find a new optimal combination. B. demand for good X to increase. C. MU/P of good Y to increase, so the consumer now must buy more Y to find a new optimal combination. D. MU/P of good Y to decrease, so the consumer now must buy more Y to find a new optimal combination.