The open economy multiplier will increase if
A. the MPM increases.
B. the MPC increases.
C. the MPM decreases.
D. either the MPM or the MPC increases.
Answer: C
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Economies of scale are created by greater efficiency of capital and by:
a. longer chains of command in management. b. better wages for labor. c. smaller plant sizes. d. increased specialization of labor.
The unemployment rate equals the
A) number of employed persons divided by the number of unemployed persons. B) number of unemployed persons divided by the civilian non-institutional population. C) number of unemployed persons divided by the civilian labor force. D) sum of unemployed persons and discouraged workers divided by the civilian labor force.
A country will have a balance-of-payments surplus when its exchange rate:
A. is overvalued. B. equals the market equilibrium value. C. is flexible. D. is undervalued.
Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of BrushesOpportunity Cost of Brushes in Terms of CombsNumber of CombsOpportunity Cost of Combs in Terms of BrushesJ0 4 K10 3 L17 2 M21 1 N23 0 Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis of Table 1.3, what is the opportunity cost of producing at point M rather than point N?
A. 1 brush. B. 23 combs. C. 21 combs. D. 2 brushes.