The assumption of ceteris paribus holds well in the real world
a. True
b. False
Indicate whether the statement is true or false
False
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How can trade policy, fiscal policy, and monetary policy be used to support fixed exchange rates when there is a surplus of U.S. dollars?
What will be an ideal response?
Which of the following statements best describes the price, output, and profit conditions of monopolistic competition?
A. Price will equal marginal cost at the profit-maximizing level of output; profits will be positive in the long-run. B. Price will always equal average variable cost in the short run and either profits or losses may result in the long run. C. Marginal revenue will equal marginal cost at the short run, profit-maximizing level of output; in the long run, economic profit will be zero. D. Marginal revenue will equal average total cost in the short run; long-run economic profits will be zero.
College education provides higher income for the individual but also a more productive and more educated person who will contribute to society in many ways. Higher education is an example of:
A. a nonexcludable service. B. a negative externality. C. adverse selection. D. a positive externality.
If Christina goes surfing for two hours instead of earning $20 per hour for those two hours, her opportunity cost is
A. the good time spent surfing. B. $40. C. the travel time to the beach. D. the minimum wage that some other people would earn.