Which of the following will most likely cause an increase (shift to the right) in both the long-run and short-run aggregate supply curves?
a. an increase in the national debt
b. an increase in income tax rates
c. a decrease in the economy's rate of investment and capital formation
d. a technological improvement in robotics that substantially increases labor productivity
D
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Voluntary export restraints are illegal under international trading rules
Indicate whether the statement is true or false
To hedge the interest rate risk on $4 million of Treasury bonds with $100,000 futures contracts, you would need to purchase
A) 4 contracts. B) 20 contracts. C) 25 contracts. D) 40 contracts.
An industry which has no barriers to entry, no product-promotion strategy, a standardized product, and a very large number of firms operating within it, is said to have:
a. a monopoly market structure. b. perfect competition. c. monopsonistic competition. d. monopolistic competition. e. an oligopoly market structure.
According to the theory of ________, specialization and free trade will benefit all trade partners, even when some are absolutely more efficient producers than others.
A. comparative advantage B. laissez-faire C. social equity D. absolute advantage