In the Keynesian model, a decline in interest rates will cause investment to
A) increase.
B) decline.
C) remain unchanged.
D) move erratically, depending on the interest rate effect on saving.
A
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If the consumption of a good by one person reduces its consumption by others, then the good is
A. nonrivalrous in consumption. B. rivalrous in consumption. C. nonexcludable. D. excludable. E. b and d
Which of the followingbestdescribes the economic concept of utility?
a. Utility is the total number of units a consumer buys. b. Utility measures the usefulness of goods, such as tools or food, and so goods such as artwork or attractive landscaping by definition has no utility. c. Utility measures the satisfaction, or pleasure, that people receive from consuming a good or service. d. None of the above are correct.
When the U.S. dollar appreciates against a foreign currency, U.S. goods become:
A. more expensive to people abroad, and we expect net exports to decrease. B. less expensive to people abroad, and we expect net exports to increase. C. more expensive to people abroad, and we expect net exports to increase. D. less expensive to people abroad, and we expect net exports to decrease.
Economic profits in the rent-a-wreck industry are $400,000 per firm. Assuming that the industry is perfectly competitive,
A. new firms will enter and the supply of the car rentals will increase. B. new firms will enter but there will be no effect on the supply of car rentals. C. firms will leave the industry and supply will fall. D. the industry is in equilibrium.