Consider the two graphs above. Suppose that technological progress is expected to reduce the future cost of capital goods. This would ________ the desired level of the capital stock, as depicted in graph ________
A) increase; B
B) increase; A
C) decrease; B
D) decrease; A
C
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Mark loves ice cream. At any point in time, he will buy an additional ice cream cone if
A) the marginal benefit from it exceeds the price. B) the marginal benefit from it is zero. C) his willingness to pay is less than the price. D) there is no deadweight loss produced by his purchase of a cone. E) None of the above answers is correct.
An increase in U.S. sales of movies to other countries raises U.S
a. exports and so raises the U.S. trade balance. b. exports and so reduces the U.S. trade balance. c. imports and so raises the U.S. trade balance. d. imports and so reduces the U.S. trade balance.
Explain the impact on the domestic economy of an import quota on oranges.
What will be an ideal response?
In the Supply and Demand of Loanable Funds model presented in Chapter 3, the variable that adjusts to equilibrate the supply and demand for goods and services is:
A. government spending. B. consumption. C. taxes. D. the real interest rate.