Refer to the above table. If the price is $5, the perfectly competitive firm should produce
A. 105 units.
B. 106 units.
C. 107 units.
D. 104 units.
Answer: D
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The prices of most services have risen much faster than inflation in recent years because
a. wages and salaries of service providers have risen much faster than inflation. b. wages and salaries of service providers have risen but their productivity has not. c. the productivity of service providers has risen dramatically. d. the demand for services has risen.
A good's nominal price is the:
A. average real price of the good. B. absolute price of the good in dollar terms. C. dollar price of the good relative to the average dollar price of all other goods and services. D. dollar price of the good relative to the real price of all other goods and services.
A country's trade is balanced when
A. its net exports are greater than zero. B. its government expenditures are equal to its tax revenues. C. its imports exceeds its exports. D. its net exports equal to zero.
Refer to the above figure. If government sets the maximum legal price of gasoline at $2 per gallon, then the $2 limit acts as
A) a price floor. B) a price ceiling. C) an equilibrium price. D) a just price.