For a good where network externalities are present, having an early lead in the race for customers may be the only lead necessary to ultimately win the race for dominance in the good's market.
Answer the following statement true (T) or false (F)
True
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Which of these changes is likely to follow when the Fed purchases U.S. government securities? a. Aggregate demand will decrease
b. The demand for financial securities will increase. c. Rate of interest will increase. d. Planned investment spending will increase. e. Real GDP will decrease.
According to the ____ view, a nation’s wealth consists of the amount of gold or other monies at its command.
A. Keynesian B. free trade C. mercantilist D. monetarist
Figure 10.4 Federal Surplus or Deficit as a Percent of GDP
What will be an ideal response?
Suppose that capital and labor must be kept in a fixed proportion to produce a particular good. For example, digging a trench requires one worker who has one shovel. What does this imply about returns to scale?
A) There are constant returns to scale. B) There are increasing returns to scale. C) There are decreasing returns to scale. D) Nothing.