Extractive institutions:
A) privilege many at the expense of a few. B) privilege a few at the expense of many.
C) are restricted to command economies. D) are restricted to market economies.
B
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A cartel is an agreement among firms to divide output of a product among members
a. True b. False Indicate whether the statement is true or false
The Classical model
a. is now discredited b. was developed by John Maynard Keynes c. has been completely displaced by the short-run macro model d. helps us to understand the performance of the economy in the long run e. is most useful in helping us to predict when an economic downturn will occur
If total profit is maximized, then marginal cost must equal marginal revenue
a. True b. False Indicate whether the statement is true or false
Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real GDP and current international transactions in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. Real GDP falls and the current international transactions balance becomes more negative (or less positive). b. Real GDP rises and the current international transactions balance becomes more negative (or less positive). c. Real GDP and the current international transactions balance remain the same. d. Real GDP rises and the current international transactions balance remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.