When a negative externality exists, the marginal social cost curve
a. is the same as the market supply curve
b. is the same as the market demand curve
c. lies above the market demand curve
d. lies below the market supply curve
e. lies above the market supply curve.
E
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In the open-economy macroeconomic model, a higher domestic interest rate reduces the quantity of loanable funds demanded
a. True b. False Indicate whether the statement is true or false
A manager in an investment center is offered a potential investment that would have an ROA of 15 percent. After the investment, it would make up 20 percent of his total portfolio. Currently, he makes 20 percent on his portfolio, though the company requires only 12 percent. Which of the following is true?
A. He will not make the investment because the company prefers 12 percent. B. He will make the investment because a larger portfolio is always better than a smaller portfolio. C. He will not make the investment because it lowers his overall return to 19 percent. D. He will make the investment since it is 3 percent greater than the company's required return.
The purchase of a computer by a person for household use would be counted in what category of GDP?
A. The purchase is included as part of investment. B. The purchase is not included in GDP at all, but the value of services the computer gives is included in consumption each year. C. The purchase is counted as consumption if the computer was manufactured in the United States; otherwise, it is ignored. D. The purchase is always counted as consumption.
Fill in the blank: Producers will compare ________ benefits to ________ costs when considering how much output to produce
A) average; additional B) additional; additional C) additional; average D) average; average