Whenever an input makes up a large percentage of a good's final cost, an increase in that input's price will
A) affect total cost relatively more.
B) not affect total revenues.
C) affect only accounting profits.
D) cause the firm to shutdown.
Answer: A
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If U.S. imports increase, the sum of the balance of payments accounts (the sum of the current account plus capital and financial account plus official settlements account)
A) becomes negative. B) becomes positive. C) becomes negative or positive depending on the government budget deficit or surplus. D) does not change.
A person has a comparative advantage in an activity if that person can
A) produce more goods in a given amount of time than another person. B) produce fewer goods in a given amount of time than another person. C) perform the activity at a lower opportunity cost than anyone else. D) perform that activity at a higher opportunity cost than anyone else.
Congress has not provided for greater transitional assistance to recipients leaving welfare
Indicate whether the statement is true or false
The precautionary demand for money:
a. varies inversely with the income level. b. varies inversely with the price level. c. is used as an insurance agent against unexpected needs. d. states that nominal income must exceed real income. e. is a classical concept in monetary theory.