There is no incentive for additional producers of an information product to enter the industry when the price charged for these products by each firm already in the industry is equal to
A) marginal cost.
B) average total cost.
C) average fixed cost.
D) average variable cost.
Answer: B
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According to your textbook, markets tend to "clear" due to
A) the use of threat and coercion. B) the competitive bidding process. C) the intervention of expert economists. D) a well-managed national economic plan.
An increase in the exchange rate from $2.00 = 1 € to $2.20 = 1 € is a
A) 10% depreciation of the euro with respect to the dollar. B) 10% depreciation of the dollar with respect to the euro. C) 10% appreciation of the dollar with respect to the euro. D) None of the above.
A negative value for the U.S. official reserve assets line in the balance of payments accounts means that
A) U.S. residents have sold more gold to foreigners than they bought. B) U.S. residents bought more gold from foreigners than they sold. C) the U.S. central bank has increased its holdings of foreign reserve assets. D) the U.S. central bank has decreased its holdings of foreign reserve assets.
Investment spending ________
A) is comprised of fixed and inventory investment B) is negatively related to the real interest rate C) is heavily influenced by what Keynes coined as "animal spirits" D) all of the above E) none of the above