The more that firms in an economy believe that the demand for their goods is mainly influenced by "local conditions" and not the aggregate level of demand, the ________ is the SAS curve and thus the ________ are cycles in real GDP
A) steeper, larger
B) steeper, smaller
C) flatter, larger
D) flatter, smaller
C
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If one economic agent possesses more information than their fellow transactor ________
A) economic transactions cannot occur B) the moral hazard problem has been eliminated C) the adverse section problem has been eliminated D) asymmetric information exists
Refer to Scenario 15.2. If the interest rate were 2%, Furry Software should
A) retool the offices. B) rewire the network. C) move to Southern California. D) be indifferent between retooling and rewiring. E) be indifferent between rewiring and moving.
Refer to the table below, and suppose that the firm uses production technique D. If each of the 70 units of Zenia that are produced sells for $1 apiece, then how much will be the profits of the firm from 70 units?
Suppose a firm can produce 70 units of a product, Zenia, by combining labor, land, capital, and entrepreneurial ability, as in the four alternative techniques shown in the table below. Assume further that the firm can hire labor at $3 per unit, land at $3 per unit, capital at $6 per unit, and entrepreneurship at $9 per unit.
A. $70
B. $57
C. $13
D. $83
Which one of the following is not a major factor that contributed to large trade deficits in the United States in the period 2002-2007?
A. A declining saving rate coupled with a rising investment rate in the U.S. B. A U.S. economy growing faster than its trading partners C. Large trade deficits with OPEC economies D. Flexible exchange rate between the U.S. dollar and the Chinese yuan