As long as the market sets prices above marginal costs, production will be efficient

Severance taxes are collected on _____

a. estates b. unemployment insurance c. the extraction of natural resources d. large employee bonuses

Assume that business investment spending rises, and the increase is funded by greater borrowing in the capital markets. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the real GDP and the nominal value of the domestic currency in the context of the Three-Sector-Model? a. Real GDP rises and nominal value of the domestic currency

falls. b. Real GDP falls and nominal value of the domestic currency remains the same. c. Real GDP rises and nominal value of the domestic currency remains the same. d. Real GDP rises and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.