If government purchases exceed tax revenue, there is a budget deficit
a. True
b. False
Indicate whether the statement is true or false
True
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The ________ the nominal interest rate, the ________ is the quantity of money demanded
A) lower; greater B) higher; greater C) more variable; smaller D) lower; smaller E) None of the above because the nominal interest rate does not influence the quantity of money demanded.
A profit-maximizing firm will never hire that quantity of a factor of production for which that factor has an increasing marginal productivity because
a. it would not be maximizing output. b. it would not be maximizing the productivity of labor. c. it would not be minimizing costs. d. it would not be maximizing profits.
The entry of new firms into a perfectly competitive market shifts the demand curve outward
a. True b. False Indicate whether the statement is true or false
Maximum Feasible Hourly Production Rates of EitherProduct A or Product B Using All Available ResourcesProductCountry XCountry YA48B44 Refer to the above table. If opportunity costs are constant, each nation produces only the one good for which it has a comparative advantage, and trade can occur between the two countries
A. country X will produce product B and country Y will produce product A. B. country Y will refuse to trade with country X since country Y has a comparative advantage in both products. C. country X will produce product A and country Y will produce product B. D. country X will refuse to trade with country Y since country X has a comparative advantage in both products.