Other things the same, as the real interest rate rises
a. domestic investment and net capital outflow both rise.
b. domestic investment and net capital outflow both fall.
c. domestic investment rises and net capital outflow falls.
d. domestic investment falls and net capital outflow rises.
b
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The figure above shows the production possibilities frontier for a country. In order for it to move from producing at point A to producing at point B, the country would need to
A) decrease SUV production by 1 million. B) decrease SUV production by 3 million. C) decrease SUV production by 4 million. D) decrease compact car production by 3 million. E) acquire more resources and/or more advanced technology.
A perfectly inelastic demand curve is
A) a horizontal straight line. B) a vertical straight line. C) a downward sloping straight line that intersects the horizontal axis at the origin. D) an upward sloping straight line that crosses the vertical axis.
Stan complains to his roommate that he never has enough time to finish all the homework he's assigned, and his roommate tells him to quiet down because the first of the three movies they've planned to watch that day has begun. Stan's behavior demonstrates which economic concept?
A. rational behavior B. time inconsistency C. chronologically challenged behavior D. time allocation
Firms can have a high degree of monopoly power and not be a perfect monopoly if they:
A. control 80 to 90 percent of the market. B. intimidate the other businesses in the market. C. have only a small number of competitors. D. are the single producer of a product.