When government intervenes in the production process because external benefits exist, it typically attempts
A) to impose a tax on each unit produced.
B) to shift the market's demand curve to the left.
C) to shift the market's demand curve to the right.
D) to shift the market's supply curve to the left.
Answer: C
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If a country increases its savings rate, the steady-state equilibrium level of:
A) GDP will increase. B) investment will decrease. C) capital stock will decrease. D) efficiency units of labor will increase. Consider two economies: A and B. Both the countries have access to the same aggregate production function and have the same population and same efficiency units of labor, but have different saving rates. The savings rate is higher in country A in comparison to country B.
Assume that when the price of good Z is increased from $5 to $6, the total revenue earned increases from $600 to $690. Based on this information, we can conclude that over this range, demand for Z is:
A) elastic. B) unit elastic. C) inelastic. D) perfectly inelastic.
Economists who prefer a broader definition of money prefer the:
a. M4 measure of the money supply to the M1 measure. b. M2 measure of the money supply to the M1 measure. c. M3 measure of the money supply to the M2 measure. d. prefer the M1 measure of the money supply to the M2 measure.
Which of the following is a defining feature of a multinational firm?
a. It exports goods and services to foreign nations. b. It develops joint ventures with foreign firms. c. It owns and operates production facilities in more than one country. d. It employs agents in various countries to sell their products abroad. e. It holds patents on its products and services.