Cost curves shift if i. technology changes. ii. the prices of factors of production change. iii. productivity changes
A) only i
B) i and iii
C) only ii
D) i and ii
E) i, ii, and iii
Answer: E) i, ii, and iii
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At what stage of the securitization process was moral hazard a major problem?
a. Securitization. b. Rating securitized issues. c. Insuring securitized issues d. All of the above
Which component of aggregate demand is involved in the interest rate effect caused by a price level change?
a. government purchases b. investment spending c. consumer spending d. net exports
What does a balance of trade deficit imply?
a. exports of goods and services exceed imports of goods and services b. imports of goods and services exceed exports of goods and services c. investment income received from abroad exceeds investment income paid to foreigners d. investment income paid to foreigners exceeds investment income received from abroad e. investment by foreigners exceeds domestic investment in other countries
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars
A. remains constant. B. decreases. C. initially increases, then decreases. D. increases.