The endowment effect is reflected by indifference curves that are:
A. concave to the origin.
B. convex to the origin.
C. straight lines.
D. kinked.
D. kinked.
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Refer to Horizontal Merger. The result of the merger is
a. a decrease in marginal costs. b. an increase in the quantity supplied. c. a decrease in the price. d. an increase in consumer surplus.
If the GDP deflator is less than 100 in 2013, then nominal GDP ________ real GDP in 2013
A) is less than B) is greater than C) is equal to D) may be greater than or less than
A moderate rate of inflation is considered helpful if it: a. makes wages in labor markets rigid
b. stabilizes the interest rate. c. decreases the rate of growth in investments. d. makes wages in labor markets flexible.
Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. Real GDP falls, and nominal value of the domestic currency rises. b. Real GDP rises, and nominal value of the domestic currency falls. c. Real GDP rises, and nominal value of the domestic currency rises. d. Real GDP rises, and nominal value of the domestic currency remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.