Figure 9.3Figure 9.3 shows the cost structure of a firm in a perfectly competitive market. If the market price is $6, then the firm will:
A. be better off producing 150 units than shutting down.
B. be better off exiting the market and using the resources for other production activities.
C. be better off shutting down in the short run and waiting until the market price rises above $10.
D. None of these
Answer: B
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Which of the following statements is correct?
A. The “law” of diminishing marginal utility implies that demand curves slope upward and to the right. B. If the price of a good falls, the utility-maximizing consumer will assure that marginal utility rises. C. If the price of a good falls, the consumer will purchase more of the good in order to maximize total utility. D. MU and demand have different underlying consumer behavior assumptions.
Suppose that the Bank of Japan buys yen-denominated assets with U.S. dollar assets. Everything else held constant, this transaction will cause ________ in the foreign assets held by the Federal Reserve and ________ in the U.S. monetary base
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
Which of the following shows the relationship between national income (GDP) and total spending?
a. Demand schedule b. Consumption curve c. Expenditure schedule d. Balance schedule
When two groups or individuals work together to resolve a problem it is called
a. negotiation b. grievance c. arbitration d. mediation