A competitive equilibrium is a state of affairs in which
A) markets clear, and output is maximized.
B) output is maximized, and all agents are equally well-off.
C) all agents are equally well-off and agents are price-takers.
D) economic agents are price takers and markets clear.
D
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Which of the following would be most likely to cause the per capita income of less-developed countries to rise?
a. Development of strong labor unions. b. More rapid population growth. c. Investment expenditures that enhance the human capital of labor force participants. d. An international minimum wage law.
In European terms, when the exchange rate for the U.S. dollar increases:
a. the dollar has appreciated. b. the dollar has depreciated. c. the euro has appreciated. d. the dollar has weakened
When making a decision, it is easier to identify and evaluate which of the following?
A. Neither of these is often easy to identify and evaluate. B. Benefits associated with the decision. C. Costs associated with the decision. D. Costs and benefits are equally easy to identify and evaluate.
The monetary base is equal to
A. M2 minus M1. B. banks' reserves plus currency held by the nonbank public. C. banks' reserves plus their holdings of Treasury securities. D. banks' reserves plus fed funds.