A soybean farmer sells soybeans in a perfectly competitive market and hires labor in a perfectly competitive market. The market price of soybeans is $6 a bushel, the wage rate is $30, and the farmer employs eight workers. If the farmer is maximizing his profits, then the marginal product of the eighth worker is

Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and GDP Price Index in the context of the Three-Sector-Model?

a. The quantity of real loanable funds per time period rises, and GDP Price Index falls. b. The quantity of real loanable funds per time period falls, and GDP Price Index falls. c. There is not enough information to determine what happens to these two macroeconomic variables. d. The quantity of real loanable funds per time period rises, and GDP Price Index rises. e. The quantity of real loanable funds per time period and GDP Price Index remain the same.

Because the Soviet Union educated more scientists and engineers than the United States, their level of economic growth was higher.

Answer the following statement true (T) or false (F)