When BMW, an German company, purchases a welding machine that was made in Toronto, the purchase is
A) both a German and a Canadian import.
B) a German import and a Canadian export.
C) a German export and a Canadian import.
D) neither an export nor an import for either country.
Answer: B
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After a firm makes both short and long run adjustments to its production plan following an increase in the output price,
A. the marginal product of capital will be higher. B. the marginal product of labor will be lower. C. the technical rate of substitution will be unchanged. D. (a) and (c) E. (b) and (c) F. (a) and (b) G. All of the above. H. We cannot tell for sure -- so none of the above.
Suppose you had $1000 and were deciding between two investments. One pays 5% a year for two years while the other pays 8% the first year and 2% the second year. Which investment would provide a higher return?
What will be an ideal response?
The reason some insurance customers are more eager to purchase insurance is
a. they are more risk averse b. they are less risk averse c. they have a greater risk of making a claim d. A and C
The short-run aggregate supply curve
A. shows the relationship between aggregate production and the price level holding constant potential GDP and all resource prices .
B. shows a negative relationship between the price level and real national income holding constant potential GDP and all resource prices.
c. shows what each producer is willing and able to produce at each level of income holding constant potential GDP and all resource prices.
d. becomes vertical if there is excess production capacity within the economy.