Suppose the development of the European Union leads to greater investment in Europe. You'd expect
A. an increase in the world real interest rate.
B. a recession in Europe.
C. a decline in the world real interest rate.
D. a rise in the current account in Europe.
Answer: A
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Which of the following distinguishes the short run from the long run in pure competition?
A. Firms can enter and exit the market in the long run but not in the short run. B. Firms attempt to maximize profits in the long run but not in the short run. C. Firms use the MR = MC rule to maximize profits in the short run but not in the long run. D. The quantity of labor hired can vary in the long run but not in the short run.
Which of the following statements is correct?
A. Marginal utility is the cumulation or summation of total utility B. Total utility is the cumulation or summation of marginal utility C. Total utility is the product of multiplying price times marginal utility D. Total utility is the change in marginal utility as quantity consumed increases