Consider a small open economy with desired national saving of Sd = 200 + 10,000rw and desired investment of Id = 1000 - 5000rw. If rw = 0.05, then net exports equal
A) 100.
B) 50.
C) -50.
D) -100.
C
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The use of interchangeable parts in armament production by Whitney and North:
a. caused machinery to be replaced by skilled labor. b. capital-labor proportions in the US to remain equal to those in England. c. allowed producers to raise the price of guns. d. increased the demand for skilled labor.
Carolyn spends her income on popular magazines and music CDs. If the price of a CD is four times the price of a magazine and if Carolyn is maximizing her utility, she buys
A) both goods until the marginal utility of the last CD purchased is four times the marginal utility of the last magazine purchased. B) both goods until the marginal utility of the last magazine purchased is four times the marginal utility of the last CD purchased. C) four times as many magazines as CDs. D) four times as many CDs as magazines.
The political business cycle refers to the possibility that:
a. incumbent politicians will be reelected regardless of the state of the economy. b. politicians will manipulate the economy to enhance their chances of being reelected. c. there are more recessions prior to elections. d. recessions coincide with election years.
The "Bubbles, Bubbles" soap bubble firm's price and cost data are: price = $10; MR = $10; MC = $10; ATC = $10 . This firm is
a. making an economic profit of $10 b. in monopolistic competition and in short-run equilibrium c. about to shut down because economic profit is zero d. a monopolist with a relatively inelastic demand e. in a perfectly competitive market and in long-run equilibrium