If a supplier faces a perfectly horizontal demand curve and sets his price slightly higher than the demand curve itself, he can expect:
a. no change in his total revenues.
b. everyone to begin buying his product.
c. a complete loss of revenues.
d. a new demand curve.
e. a relative increase in income.
c
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Due to macroeconomics interdependence between large countries, the effect of a permanent monetary policy expansion by Home is as follows: Home output
A) rises, Home's currency depreciates, and Foreign output may rise or fall. B) falls, Home's currency depreciates, and Foreign output may rise or fall. C) rises, Home's currency appreciates, and Foreign output may rise or fall. D) rises, Home's currency depreciates, and Foreign output rises. E) falls, Home's currency appreciates, and Foreign output may rise or fall.
If a reduction in taxes on savings reduced the amount of private saving, then the
a. income effect equaled the substitution effect. b. income effect outweighed the substitution effect. c. the substitution effect outweighed the income effect. d. None of the above.
In 2007, Google spent more than $2 billion on property and equipment. This is called
A. aggregate production investment. B. intermediate inputs. C. aggregate investment. D. investment in physical capital.
For developing countries, one of the more effective ways to become more developed is
A. to invest in human capital. B. to reduce direct foreign investment. C. to increase trade barriers. D. to invest more in the military.