A profit-maximizing firm will continue to employ land until
A. MRPLAND = MPLAND.
B. MRPLAND = 0.
C. MRPLAND = PLAND.
D. MPLAND = PLAND.
Answer: C
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The use of psychological incentives to solve commitment problems would be least effective in games played:
A. once between strangers. B. repeatedly between strangers. C. repeatedly between family members. D. once between family members.
If the real interest rate is lower than the equilibrium real interest rate:
A) the quantity of credit demanded equals the quantity of credit supplied. B) the quantity of credit demanded falls short of the quantity of credit supplied. C) the quantity of credit supplied falls short of the quantity of credit demanded. D) interest rates tend to fall further.
Which of the following is not an example of foreign aid?
a. U.S. discount department stores purchasing toys from Chinese manufacturers b. The International Monetary Fund extending loans to countries that have trouble with their balance of payments c. The World Bank providing loans and grants to support health and education programs d. The U.S. government paying to build an electricity plant in Albania e. The Australian government paying to repair highways in Tonga
The percentage change in quantity demanded of good A divided by the percentage change in price of good B is the formula for
a. cross-price elasticity of demand. b. income elasticity of demand. c. zero elasticity of demand. d. infinite elasticity of demand.