An innovation cycle could be caused by
a. a decreasing capital stock
b. a sharp increase in national income
c. a climatic change
d. a sharp increase in the pace of technological change
e. a decrease in the demand for housing
D
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An increase in price could occur due to a(n)
a. Increase in demand and no change in supply b. Decrease in supply and no change in demand c. An increase in demand and decrease in supply d. All of the above
Unintended costs that are imposed in third parties as a result of an economic activity are called:
a. marginal costs. b. direct costs. c. negative externalities. d. positive externalities. e. positive costs.
Archie can paint 5 backyard fences or repair 2 cars in 8 hours, while Austin can paint 4 backyard fences or repair 2 cars in 8 hours. Identify the correct statement
a. Archie is relatively better in repairing cars. b. Archie is relatively better in painting fences. c. Austin is relatively better in painting fences. d. Archie and Austin are equally good in painting fences. e. Neither Archie not Austin are good in repairing cars.
When an increase in the quantity of money is considered to be permanent and prices are sticky, then in the short run the exchange rate depreciates and overshoots because:
a. domestic nominal returns fall relative to foreign returns, and traders expect a permanent depreciation in future exchange rates. b. traders do not change their expectations of the exchange rate, and lower domestic rates make it easier to borrow. c. inflationary expectations eventually cause a rise in domestic real returns. d. traders quickly realize that their expectations of future exchange rates are incorrect and eventually prices will become unstuck.