In an open economy, domestic investment equals:
A. domestic saving.
B. net capital inflows.
C. domestic saving plus net capital outflows.
D. domestic saving plus net capital inflows.
Answer: D
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When a certain monopoly sets its price at $8 it sells 64 units. When the monopoly sets its price at $10 it sells 62 units. The marginal revenue for the firm over this range is
a. $22. b. $27. c. $54. d. $108.
In general in the U.S., persons classified as poor have money income that amounts to
A. less than half the median income. B. three quarters of the median income. C. the median income. D. half the median income.
Gains from trade are the:
A. increase in welfare in both countries that results from specialization and trade. B. increased skills and human capital that results from specialization and trade. C. transfer of surplus by the receiving country that results from trade. D. deadweight loss by the losing country that results from trade.
For this question, assume that individuals do not hold currency (i.e., c = 0). If the ratio of reserves to deposits is .10, the money multiplier is
A) .1. B) .9. C) 4. D) 5. E) 10.