Suppose the government of a large open economy reduces its spending, so that national saving increases. The result is
A. an increase in the foreign country's net exports.
B. a decrease in investment.
C. an increase in the real interest rate.
D. a decrease in the foreign country's net exports.
Answer: D
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When a firm is able to engage in perfect price discrimination, its marginal revenue curve
A) lies below its demand curve. B) is the same as its demand curve. C) lies above its demand curve. D) is the same as its supply curve. E) is undefined because it does not exist.
Which of the following is an implicit cost of production?
A) interest paid on a loan to a bank B) wages paid to labor plus the cost of carrying benefits for workers C) the utility bill paid to water, electricity, and natural gas companies D) rent that could have been earned on a building owned and used by the firm