If a country's government moves from a budget deficit to a budget surplus, which curve in the market for loanable funds shifts and which direction does it shift? What happens to the interest rate?
The supply of loanable funds shifts right causing the interest rate to fall.
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A monopoly is:
a. a seller of a highly advertised and differentiated product in a market with low barriers to entry in the long run. b. the only seller of a good for which there are no good substitutes in a market with high barriers to entry. c. the only buyer of a unique raw material. d. the producer of a product subsidized by the government.
For a monopolist to practice effective price discrimination, one necessary condition is:
a. identical price elasticity among groups of buyers. b. differences in the price elasticity of demand among groups of buyers. c. that the product is homogeneous market. d. none of these.
Which of the following statements is true?
a. The law of diminishing returns states that beyond some point the marginal product of a variable resource continues to rise. b. The marginal product is the change in total output by adding one additional unit of a fixed input. c. Fixed costs are costs which vary with the output level. d. When marginal productivity of a variable input is falling then marginal costs of production must be rising. e. When marginal cost is below average cost, average cost rises; when marginal cost is above average cost, average cost falls.
A free agent is a player who
A. can sell his services to the highest bidder. B. is eligible to be drafted. C. is bound to the team he was under contract with the previous year. D. must play for free.