As shown in Figure 7-4, an autonomous decline in expectations of future profitability causes the
a. IS schedule to shift to the left.
b. IS schedule to shift to the right.
c. LM schedule to shift to the right.
d. LM schedule to shift to the left.
A
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Suppose that in Colombia one unit of labor can produce either 8 tons of papayas or 2 tons of bananas and in Brazil one unit of labor can produce either 4 tons of papayas or 1 ton of bananas. Given this information, which of the following statements is true?
A. Columbia has a comparative advantage in producing papayas but not bananas. B. These countries would increase combined consumption if they specialized and traded. C. These countries cannot gain from trading. D. Columbia has a comparative advantage in producing papayas and bananas.
For an unconstrained maximization problem
A. the decision maker seeks to maximize net benefits. B. the decision maker does not take cost into account because there is no constraint. C. the decision maker seeks to maximize total benefits. D. the decision maker does not take the objective function into account because there is no constraint. E. none of the above
Other things being equal, if a firm's marginal cost curve shifts upward at all output levels:
A. the average total cost curve remains unchanged at all output levels. B. the average variable cost curve remains unchanged at all output levels. C. the average fixed cost curve remains unchanged at all output levels. D. All of these
What is money?
What will be an ideal response?