For a major country with extensive capital flows, what is the effect of a decrease in interest rates?
a. There will be an inflow of capital, a currency depreciation, and increased net exports.
b. There will be an inflow of capital, a currency depreciation, and reduced net exports.
c. There will be an outflow of capital, a currency depreciation, and increased net exports.
d. There will be an inflow of capital, a currency appreciation, and reduced net exports.
C
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For firms that sell one product in a perfectly competitive market, average revenue will:
A. increase if marginal revenue is greater than it. B. decrease if marginal revenue is greater than it. C. always be the same as marginal revenue. D. always be greater than average total cost.
Suppose there is a technology to produce Grendels such that there are diseconomies of scale after the first unit is produced. There are both fixed (a physical plant called a lair) and variable (food that grows in lairs) costs of production. Which statement is true?
a. b and d. b. Producing multiple units increases the average fixed cost. c. There will be no more than one firm in this industry. d. It is cheaper to make five Grendels by buying five lairs and producing one Grendel in each lair than it is to produce five Grendels in one lair. e. This is an impossible situation.
Structural unemployment occurs when unemployed workers move between jobs
a. True b. False Indicate whether the statement is true or false
According to the human-capital view, education
a. has no effect on lifetime earnings. b. alters work ethic. c. enhances productivity. d. is an indicator of natural ability.