If a firm is able to charge a higher price for its output, all else equal, the value of the marginal product of labor will decrease to offset the higher price
a. True
b. False
Indicate whether the statement is true or false
False
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Ceteris paribus, how does an expansion in the United States affect U.S. net exports?
What will be an ideal response?
If the banking sector borrows internationally and lends locally, how does this intensify a financial crisis?
What will be an ideal response?
If the theory behind an economic model fits the data poorly, you would probably want to
A) use the theory to predict what would happen if the economic setting or economic policies change. B) start from scratch with a new model. C) enrich the model with additional assumptions. D) restate the research question.
No country can have an absolute advantage in the production of more than one good
a. True b. False Indicate whether the statement is true or false