In the long run, import quotas increase net exports
a. True
b. False
Indicate whether the statement is true or false
False
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The BP curve shifts to the left when:
a. the exchange rate falls. b. interest rates rise. c. income rises. d. imports increase.
A monopolistically competitive firm maximizes profits when it
A) produces the quantity at which marginal cost equals the market price. B) produces the quantity at which marginal cost equals marginal revenue and uses the demand curve to determine the market price. C) produces the quantity at which marginal cost equals marginal revenue and sets the price equal to the marginal cost. D) produces the quantity at which marginal cost equals marginal revenue and sets the price equal to the marginal revenue.
All else equal, if there are diminishing returns, then which of the following is true if a country increases its capital by one unit?
a. Output will rise by more than it did when the previous unit was added. b. Output will rise but by less than it did when the previous unit was added. c. Output will fall by more than it did when the previous unit was added. d. Output will fall but by less then it did when the previous unit was added.
If union-sponsored advertisements for a particular product succeed in increasing the demand for that product, the:
A. demand for the union-labor used to produce the product will increase. B. demand for the union-labor used to produce the product will decrease. C. marginal factor cost of union-labor will increase. D. marginal factor cost of union-labor will decrease.