As the dollar appreciates, the foreign price of United States goods ______________, ultimately shifting the United States AD curve ________________
A) rises; rightward
B) rises; leftward
C) falls; rightward
D) falls; leftward
B
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In the short run, if marginal product is at its maximum, then
A) average variable cost is at its minimum. B) total cost is at its maximum. C) marginal cost is at its minimum. D) average cost is at its minimum.
An economic policy has a decent chance of working as intended, if ________
A) the policy causes no change in expectations B) if mistaken expectations are not very costly C) the rationale behind the policy is well-understood by the public D) expectations are formed in the same way by both the public and the policymakers
Assume your roommate is very untidy. According to campus policy, you have a right to live in an uncluttered apartment. Suppose she/he gets a $200 benefit from being untidy but imposes a $100 cost on you. The Coase Theorem would suggest an efficient solution can be reached where: a. you continue to live with your messy roommate until you are able to make other living arrangements elsewhere. b
your roommate stops her/his messy habits or you force her/him to move out. c. you pay your roommate at least $100 but no more than $200 to clean up after (her)himself. d. your roommate pays you at least $100 but no more than $200 for the right to be untidy (or to have you clean up after her/him).
Which statement is true?
A. There are many firms in a monopolistically competitive industry. B. Monopolistic competitors produce an identical product. C. In order for product differentiation to take place, there must be clear physical differences among the products sold. D. None of these statements are true.