Because of diminishing returns, a factor in relatively low supply has a
a. low marginal product and a low rental price.
b. low marginal product and a high rental price.
c. high marginal product and a low rental price.
d. high marginal product and a high rental price.
d
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A country that currently does not trade with other countries could benefit by
a. restricting imports and promoting exports. b. promoting imports and restricting exports. c. restricting both imports and exports. d. not restricting trade.
In Ugoland, the money supply is $8 million and reserves are $1 million. Assuming that people hold only deposits and no currency, and that banks hold no excess reserves, then the reserve requirement is
a. 14 percent. b. 12.5 percent. c. 8 percent. d. None of the above is correct.
Which of the following is not a characteristic of the monopolistic competition market structure?
a. Many sellers, each small in size relative to the overall market. b. Few sellers. c. Differentiated product. d. Easy, low-cost entry and exit.
When the economy goes through ups and downs over time:
A. it is not reflected by changes in GDP growth. B. economists call this pattern the business cycle. C. it affects the supply of labor. D. All of these are true.