Assuming that the value effect dominates, the current account will increase if
A) the real exchange rate decreases.
B) the real exchange rate increases.
C) disposable income increases.
D) exports fall.
E) domestic prices fall.
B
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If actual aggregate expenditure equals aggregate planned expenditure, then
A) firms obtain the desired change in their inventories. B) there is never any change in firms' inventories. C) unplanned inventory changes are negative. D) actual aggregate expenditure might be greater than, equal to, or less than real GDP. E) unplanned inventory changes are positive.
The only circumstance under which a factor will earn no rent is when the factor's supply curve is
a. vertical. b. upward sloping. c. perfectly horizontal. d. kinked.
Which of the following does not characterize a competitive market?
A.) Many firms B.) Advertising by individual firms C.) Low barriers to entry D.) Zero economic profit in the long run
In what ways is government involved with the creation of barriers to entry?
What will be an ideal response?