If a U.S. firm buys Chinese toys using previously obtained Chinese currency, then both U.S. net exports and U.S. net capital outflow decrease
a. True
b. False
Indicate whether the statement is true or false
True
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In Keynesian analysis, if investment remains constant when income changes, the investment is called
A) discretionary. B) autonomous. C) planned. D) unplanned.
If the supply of loanable funds increases, what is the result for the equilibrium of the loanable funds market?
A) A surplus of loanable funds would push interest rates down and increase the equilibrium quantity of loanable funds. B) A surplus of loanable funds would push interest rates up and decrease the equilibrium quantity of loanable funds. C) A shortage of loanable funds would push interest rates down and increase the equilibrium quantity of loanable funds. D) A shortage of loanable funds would push interest rates up and decrease the equilibrium quantity of loanable funds.
Assume a toy company hires an additional worker to assemble toys, and the size of the factory and amount of equipment remain constant. As a result, the level of output increases but by a smaller amount than when the previous additional worker was hired. This is an example of:
a) The law of substitution. b) Say's Law. c) The law of diminishing returns. d) The law of poor planning.
The first-order condition for a monopoly maximizing its profit is:
A. (d2R(Q)/dQ2) ? (d2C(Q)/dQ2) < 0. B. (dR(Q)/dQ) ? (dC(Q)/dQ) < 0. C. P ? (dC(Q)/dQ) = 0. D. (dR(Q)/dQ) ? (dC(Q)/dQ) = 0.