A monopoly
a. can ignore the law of demand
b. faces a demand curve for its output that is nowhere price inelastic
c. establishes the market price when it decides how much to charge
d. can sell additional units of output without lowering its price
e. is also a perfect price discriminator
C
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According to the new classical system, an unanticipated increase in the money stock
a. will shift the aggregate supply schedule only. b. will shift the aggregate demand schedule only. c. will shift both the aggregate demand and aggregate supply schedules. d. None of the above
If foreign income falls, there will be _____
a. an increase in foreign spending b. a rise in domestic aggregate demand c. no change in either domestic net exports or aggregate demand d. a decline in the domestic price level e. a decrease in domestic aggregate demand
The marginal rate of substitution between two goods always equals the
a. marginal utility of one divided by the marginal utility of the other. b. marginal utility of one times the marginal utility of the other. c. price of one good divided by the price of the other. d. Both a and c are correct.
Foreign direct investment refers to
A. the granting of a loan to a company located in a foreign country. B. a direct monetary grant to a foreign company or government. C. the acquisition of less than 10 percent of the shares of ownership in a company in another nation. D. the acquisition of more than 10 percent of the shares of ownership in a company in another nation.