An increase in the capital stock has the same effect on the production function as an increase in
A. labor.
B. output.
C. GDP.
D. technology.
Answer: D
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A firm that buys foreign exchange in order to take advantage of higher foreign interest rates is
A) speculating. B) demonstrating purchasing power parity. C) engaging in interest rate arbitrage. D) responding to fluctuations in the business cycle. E) ignoring the nominal rate of exchange.
If Country A's has an overall balance surplus, then the:
a. Central bank must not be intervening in the foreign exchange market. b. Government has to be running a budget deficit. c. Effect is to cause the monetary base to rise. d. Effect is to cause the monetary base to fall. e. Financial account must be in deficit.
Some colleges charge all students the same fee for access to campus computing services. Suppose that students differ by how many hours of campus computing services they use. For example, some students print all their papers and assignment in the campus computer labs, while others use their own printers in their apartments. The computing services fee is most like a(n)
a. excise tax that conforms to the benefits principle. b. excise tax that violates the benefits principle. c. lump-sum tax that conforms to the benefits principle. d. lump-sum tax that violates the benefits principle.
Of the collection of supply and demand diagrams in Figure 2.2, which one shows the result of a decrease in the number of sellers in the market for anything?
A. Figure 1 B. Figure 2 C. Figure 3 D. Figure 4