If real interest rates in the United States fell and real interest rates in England rose, we would expect people to:
a. increase their demand for British pounds.
b. borrow more from U.S. sources
c. buy relatively more British assets.
d. all of the above
d
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Some economic historians argue that the Interstate Commerce Commission (ICC) was the first case of the "capture" of a federal regulatory commission. What does this mean?
(a) The railroads used the ICC to solve the problems of cartel management. (b) The users of the railroads—passengers and shippers—influenced the ICC to keep railroad rates high and the quality of those services high. (c) The railroads used the Commission to keep rates high and keep potential new railroads from entering the business. (d) Foreign investors high jacked the ICC to protect their railroad investrments.
A point inside the production possibility frontier is:
A. inefficient. B. impossible. C. efficient. D. optimal.
Between two countries, comparative advantage is found by comparing the:
a. relative costs of production in each country. b. absolute costs of production in each country after accounting for inflation. c. labor hours required to produce a bundle of products in each country. d. level of interest rates in each country. e. shipping and transportation costs of each country.
A monopolist's supply curve cannot be derived directly from its marginal cost curve as in the case of a competitive firm
a. True b. False Indicate whether the statement is true or false