Based on the Saving-Investment Diagram, if the domestic real interest rate is indicated by B, then ________
A) the value of net exports is zero
B) the diagram represents a closed economy
C) the world real interest rate is indicated by A
D) the difference between values F and E measures the net capital inflow
E) none of the above
A
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Which of the following is the definition of a capital gain?
a. An increase in a firm's capital stock b. Profit earned from selling a financial asset c. The dividend earned from a company's stock d. Taxes saved by selling a share of corporate stock e. The profit earned by a corporation
If a perfectly competitive firm is producing 1,500 units and, at the 1,500th unit, the difference between marginal revenue and marginal cost (MR - MC) is negative, which of the following is true?
A) The firm should increase production to maximize profit. B) The 1,500th unit costs less to produce than the firm earns in revenue. C) The firm is maximizing profit. D) The firm should decrease production to maximize profit.