If price is greater than average variable cost, a profit maximizing firm will always
A. where Total Revenue is maximized.
B. produce where Average Total Cost is minimized.
C. produce where Marginal Cost equals Marginal Revenue.
D. produce where Marginal Cost is minimized.
Answer: C
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An expansionary monetary policy may be frustrated if the ________.
A. saving schedule shifts downward B. net export schedule shifts upward C. money demand curve shifts to the left D. investment demand curve shifts to the left
Use the following diagram to answer the next question.
The move shown in the diagram can be explained by ________.
A. interest rates falling B. businesses becoming pessimistic C. businesses becoming optimistic D. interest rates rising
Suppose that a haircut in your hometown costs $20, while the price for the same haircut in Mumbai is 600 Indian rupees. At which nominal exchange rate is the dollar price lower for the Mumbai haircut?
A) 0.029$/Rs. B) 20Rs./$ C) 25Rs./$ D) 0.04$/Rs.
When OPEC raised the price of oil, it created a:
a. demand-pull inflation. b. cost-push inflation. c. demand-push inflation. d. cost-pull inflation. e. cost-push deflation.