What have we assumed when we conclude that a real depreciation of the currency improves the current account?
A) The volume effect outweighs the value effect.
B) The value effect outweighs the volume effect.
C) All else equal and the volume effect outweighs the value effect.
D) All else equal and the value effect outweighs the volume effect.
E) All else equal and the volume effect equals the value effect.
C
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An unregulated monopoly will
A) flood the market with goods to deter entry. B) produce only where marginal revenue is zero. C) produce in the inelastic range of its demand curve. D) produce in the elastic range of its demand curve.
When do diminishing marginal returns occur?
(A) When some workers increase output but others decrease it. (B) When extra workers will have to wait their turn to be productive. (C) When the marginal product of labor increases as the number of workers increases. (D) When additional workers increase total output at a decreasing rate.