A monopolist seller of Irish ceramics faces the following demand function for its product: P = 62 - 3Q. The fixed cost is $10 and the variable cost per unit is $2 . What is the maximizing QUANTITY for this monopoly?
a. Q = 10
b. Q = 15
c. Q = 22
d. Q = 37
e. Q = 41
a
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By charging the equilibrium price for shared rides as opposed to the government-regulated price charged by traditional taxi companies, Uber has
A) increased deadweight loss. B) decreased producer surplus. C) increased consumer surplus. D) decreased consumer surplus.
Which of the following would be part of the nation's current account?
A) An old house purchased by an American in Italy B) The purchase of a U.S. Treasury bond by a foreigner C) The interest an American earns on a British bond D) A factory built by the Japanese in the United States
Consider a small open economy that is in equilibrium with a current account surplus
(a) Draw a diagram showing this situation. (b) Now suppose that future income increases. Show what happens in your diagram. What happens to the world real interest rate and the equilibrium quantities of saving, investment, and the current account balance? (c) Repeat parts (a) and (b) for the case of a large open economy, showing a situation in which the home country initially has a current account surplus. Draw a diagram and describe how the rise in future income in the home country affects all four variables (the world real interest rate and the equilibrium quantities of saving, investment, and the current account balance) in both countries.
When John F. Kennedy said, "A rising tide lifts all boats," to what was he referring?
a. With government intervention, all citizens receive a greater allocation of resources. b. With market forces working independently, everyone receives an equitable share of resources. c. With economic growth, more families are pushed above the poverty line. d. None of the above are correct.