The classical model assumes that
a. the supply of labor is fixed
b. the stock of capital and technology are fixed
c. the stock of capital and technology grows at a constant rate
d. the supply of labor grows at a constant rate
e. the supply of labor grows at an increasing rate.
B
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Suppose that the Bank of Japan buys U.S. dollar assets with yen-denominated assets. Everything else held constant, this transaction will cause ________ in the foreign assets held by the Federal Reserve and ________ in the U.S. monetary base
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
A characteristic of outsourcing is
a. completely unrelated to vertical integration b. likely to be profitable exactly when vertical integration is unprofitable c. it prevents a firm from focusing on its core competencies d. it prevents the exploitation of differing degrees of economies of scale at different points in the supply chain
Net foreign factor income is the:
A. income earned from the domestic economy by foreign factors. B. difference between the value of a country's exports and imports. C. income earned abroad by domestic factors. D. difference between the income earned abroad by domestic factors and the income earned domestically by foreign factors.
A negative externality is said to exist if
A. the social costs exceed the private costs. B. the private marginal cost exceeds the private marginal benefit. C. the producer and the consumer surplus for a particular good are not equal. D. a tax imposed on the production of a particular good results in a deadweight loss.