Regulations are sometimes used to "correct" the failures of a market mechanism
a. True
b. False
Indicate whether the statement is true or false
True
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Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. Real GDP rises, and nominal value of the domestic currency rises. b. Real GDP rises, and nominal value of the domestic currency falls. c. Real GDP rises, and nominal value of the domestic currency remains the same. d. Real GDP falls, and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.
If total production is less than total expenditures, then business firms
A) have overproduced. B) will cut back on production. C) will raise production. D) will experience increases in inventory. E) a and d
The most-favored-nation policy is a WTO privilege that allows member nations to restrict tariff cuts to members.
a. true b. false
Consider an output beyond the minimum point of a firm’s short run average total cost curve. At this level of output the firm can use its _______ input at a lower average cost but only by using its _______ input at a higher average cost.
A) fixed capital; variable labor B) variable labor; fixed capital C) variable capital; fixed labor D) fixed labor; variable capital