Whatever else you learned about profit-maximization, you should have learned this: Maximum profit is obtained at the production level where
a. P = AC
b. TR = TC
c. MR = AR
d. MR = MC
e. TR = MR
D
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Assume that Brazil and Mexico have floating exchange rates. All else held constant, if the price level is stable in Mexico but Brazil experiences rapid inflation then ________.
A. the Brazilian real will appreciate B. the Brazilian real will depreciate C. gold bullion will flow into Brazil D. the Mexican peso will depreciate
If the world price for good A is above the domestic price for good A without trade, then the price the consumer pays for good A will ________ and the price the producer receives for good A will ________ with trade.
A. increase; increase B. decrease; increase C. decrease; decrease D. increase; decrease
Income is considered to be a
A) nontaxable stream of funds. B) flow. C) stock. D) resource.
Which of the following would suggest that monetary policy is restrictive?
a. falling commodity prices b. depreciation of the foreign exchange value of the dollar c. a rising M1 money supply d. an increase in the rate of inflation