Import-competing industries in the United States are likely to resist
A. Depreciation of the dollar.
B. Devaluation of the dollar.
C. Evaluation of the dollar.
D. Appreciation of the dollar.
Answer: D
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A firm is currently producing1140 units of output according to the production function q = L4/3K1/2 and faces input prices equal to w = $20 and r = $80. In the short run, capital is fixed at 5 units. In the long run, the firm's costs are
A) lower because the firm substitutes towards more labor and away from capital. B) lower because the firm substitutes towards more capital and away from labor. C) higher because the firm substitutes towards more labor and away from capital. D) higher because the firm substitutes towards more capital and away from labor.
Which of the following best explains why the monopolist's marginal revenue is less than the selling price?
a. To sell more units, the monopolist must reduce price on all units sold. b. As the monopolist expands output, the average total cost will decline. c. The monopolist charges each consumer the highest possible price. d. When a firm has a monopoly, consumers have no choice other than to pay the price set by the monopolist.
Anna was willing to pay $130,000 for Betty’s house, which was listed at $125,000, but Anna could only afford to spend $120,000. After negotiating, Betty sold Anna the house for $120,000. How does consumer surplus apply to this situation?
a. The consumer surplus is indeterminable because we do not know how much Betty paid for the house. b. The consumer surplus is $5,000 because Anna got Betty to lower her price by that amount. c. The consumer surplus is $10,000 because Anna was willing to pay that much more than she did. d. There is no consumer surplus because Anna did not pay less than she was willing and able to pay.
Discuss the problems that can arise when a government experiences a chronic budget deficit
Please provide the best answer for the statement.