What significance does growing economic interdependence have for a country like the United States?
A. Exports and imports decrease as a share of national output.
B. The U.S. agricultural sector increasingly benefits from free trade.
C. International political and economic events have an increasingly important effect on energy prices in the United States.
D. Foreign competition increasingly affects profits of domestic firms.
Answer: C. International political and economic events have an increasingly important effect on energy prices in the United States.
D. Foreign competition increasingly affects profits of domestic firms.
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The loss-minimizing output for the perfectly competitive firm occurs at the point at which
A) TR - MR = minimum. B) TR - TC = maximum. C) MR = MC. D) TC - ATC = maximum.
In the case study in the text involving calculator production, the fact that each calculator produced added $10.30 to cost and $12 to revenue made clear the value of ____ in determining whether or not to suspend production
a. average fixed cost b. cost saving c. marginal analysis d. the level of fixed cost
The idea that anticipated monetary policy changes cannot affect real Gross Domestic Product (GDP) or employment is known as
A. the policy irrelevance theorem. B. the Keynesian hypothesis. C. the systematic policy hypothesis. D. the bounded rationality hypothesis.
If the absolute value of the price elasticity of demand for a good is .75, the demand for that good is described as
A. inferior. B. normal. C. inelastic. D. elastic.