By how much does the monetary base change when the government decides to increase government spending by 5% (assume flexible exchange rates)?
a. There is not enough information given to tell.
b. The monetary base does not change at all.
c. The monetary base falls by 5%
d. The monetary base rises by 5%
.B
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The most important thing about higher labor productivity is that it means
A) we can compete well with other nations. B) we are doing better than anyone else is. C) we can achieve a happier population. D) we can have a higher standard of living.
Return to the version of the game between the fishermen in which they fish independently. If the marginal cost for just fisherman A went up, what would be the likely effect on the Nash equilibrium?
a. A would catch more fish, and B would catch fewer. b. A would catch fewer fish, and B would catch more. c. A would catch more fish, but B's catch would not change. d. A would catch fewer fish, but B's catch would not change.
In a monopoly, consumer surplus is
A) larger than under perfect competition. B) is equal to that under perfect competition. C) smaller than under perfect competition. D) None of these choices is true.
A disadvantage associated with grouping jobs on the basis of functional specialty is that
A. managers tend to ignore the interdependencies among units that might lower a firm's value. B. managers rely on implicit understanding and informal relationships. C. employees have to seek ratification from managers for initiation and implementation of decisions. D. employees concentrate more on achieving departmental goals rather than customer satisfaction.