Anything that affects the marginal revenue product of a nonrenewable resource will affect the demand for that resource
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following is true of import tariffs and quotas?
a. They benefit domestic producers. b. Domestic consumers gain because they purchase the output of domestic firms. c. Specialization and comparative advantage are advanced by tariffs and quotas. d. They tend to expand the volume of world trade. e. Because they increase the output levels of domestic firms, they tend to lower domestic prices.
The price of a bond with a maturity date one time period into the future is equal to its face value
a. multiplier by 1 - r. b. multiplied by 1 + r. c. divided by 1 + r. d. divided by 1 - r.
Which of the following would be expected if the tariff on foreign-produced automobiles were increased?
A. The domestic price of automobiles would fall. B. The supply of foreign automobiles to the domestic market would decline, causing auto prices to rise. C. The number of unemployed workers in the domestic automobile industry would rise. D. The demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations.
If the nominal interest rate is 6 percent and the anticipated rate of inflation is 6 percent, the real interest rate is
A. 12 percent. B. 0 percent. C. 6 percent. D. 3 percent.