In the open-economy macroeconomic model, if a country's interest rate rises, then its
a. net capital outflow and net exports rise.
b. net capital outflow rises and its net exports fall.
c. net capital outflow falls and its net exports rise.
d. net capital outflow and net exports fall.
d
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An industry in which its firms' cost structures do not vary with changes in production is referred to as a
A. price-taking industry. B. constant-cost industry. C. price-controlled industry. D. fixed-price industry.
The corn market is perfectly competitive, with thousands of corn farmers. In the 2000s, the price of corn soared so that new farmers entered the corn market
Initially, entry ________ the economic profit of the initial corn farmers and in the long run the initial corn farmers ________. A) increased; made an even greater economic profit than initially B) decreased; made zero economic profit C) increased; made zero economic profit D) decreased; incurred an economic loss E) increased; made an economic profit
Which of the following ideas apply to the neoclassical growth theory?
I. The rate of technological change influences the rate of economic growth. II. Technological change promotes saving and investment. III. Convergence of economic growth rates across countries A) I only B) III only C) I and II D) I, II and III
Which of the following examples gives an accurate reason for a firm to shut down?
a. Bertrand shuts down his hobby shop because TR > VC. b. Joan decides to shut down her coffee shop because P < AVC. c. Juan shuts down his restaurant because P < ATC. d. Chen shuts down his bakery because TR > MC.