If the private sector anticipates higher future taxes as a result of a current budget deficit, current autonomous saving will decline
a. True
b. False
Indicate whether the statement is true or false
False
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The vertical distance between a firm's total cost curve and its total variable cost curve
a. is zero b. is negative when the firm incurs fixed costs in the short run c. represents total fixed costs d. represents marginal costs e. represents average fixed costs
In an open economy national saving equals domestic investment plus net capital outflow
a. True b. False Indicate whether the statement is true or false
A deficit in the financial account means:
a) the nation has imported more assets than it exported b) the nation has exported more assets than it imported c) the nation has invested more than it saved d) the nation has produced more than it consumed
Lars is CEO of a large monopolistic firm. He looks at what is going on with revenues and pricing, and being knowledgeable about running a monopoly, he decides to reduce production. What does this tell us about his firm?
a. Marginal cost is equal to marginal revenue. b. Marginal revenue is exceeding marginal cost. c. Marginal cost is exceeding marginal revenue. d. Marginal revenue is equal to price.