The demand curve for an inferior good can never be downward sloping
Indicate whether the statement is true or false
FALSE
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Which of the following usually has the highest yield at a given point in time?
A) Corporate bonds B) Municipal bonds C) Commercial paper D) U.S. Treasury bonds
Which of the following is not equal to total surplus?
a. consumer surplus - producer surplus b. buyers' willingness to pay - sellers' costs c. value to buyers - amount paid by buyers + amount received by sellers - cost to sellers d. value to buyers - cost to sellers
The quantity of money demanded to satisfy transactions needs:
A. is intended for unexpected expenditures. B. increases with the level of real GDP. C. decreases with the level of real GDP. D. is unrelated to either national income or the interest rate.
Assume a two-country, two-commodity, two-input model where the following relationships hold:(K/L)U.S. > (K/L)ROW (K/L)automobiles > (K/L)shoes(K/L)U.S. is the capital-labor ratio in the United States, (K/L)ROW is the capital-labor ratio in the Rest of the World, (K/L)automobiles indicates the capital-labor ratio in the production of automobiles, and (K/L)shoes indicates the capital-labor ratio in the production of shoes.Assume further that technology and tastes are the same in the United States and the Rest of the World. Which of the following statements is true?
A. Production of shoes is relatively cheaper in the United States than the Rest of the World. B. The laborers in the United States are less productive than the laborers in the Rest of the World. C. Production of automobiles is relatively labor-intensive. D. Production of shoes is relatively labor-intensive.