When a nation is economically integrated with trading partners, fixed exchange rates:
A) would be very harmful to the dynamic nature of trade.
B) could promote integration and economic efficiency by keeping transaction costs low.
C) would be the best choice if that nation became the dominant nation in the transactions.
D) would be adequate but have the disadvantage of discouraging trade because of uncertainty.
Ans: B) could promote integration and economic efficiency by keeping transaction costs low.
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Under the Soviet system of communism,
A) technological progress was slow because managers had little incentive to develop new technologies. B) managerial pay was determined by the extent to which managers could lower the per-unit costs of production. C) the per-worker production function in the Soviet Union shifted up more rapidly than production functions in other countries. D) competitive pressures in the Soviet Union allowed the country's technological progress to keep pace with the rest of the world.
Which of the following is not a reason why China is unlikely to maintain high enough rates of productivity growth to catch up with the standard of living in the United States?
A) Much of China's growth is likely due to the transition from a centrally-planned economy to a market economy. B) Because of the low birth rate in China, the labor force will soon decline. C) The United States invests more in research and development than does China. D) The Chinese migration of rural workers to more productive urban jobs.
Table 7.2 contains price, demand, and cost data for the Capri Theater, the only first-run movie theater in a small town. What is its profit from non-students under the student discount policy?
A. $200 B. $250 C. $350 D. $400
A monopolistically competitive firm maximizes profit where
A. MR > MC. B. P = MC. C. MR = MC. D. MC > MR.