Answer the following questions true (T) or false (F)
1. For a downward-sloping demand curve, the marginal revenue decreases as the quantity sold increases.
2. For a monopolistically competitive firm, price equals average revenue.
3. For a profit-maximizing monopolistically competitive firm, for the last unit sold, the marginal cost of production is less than the marginal benefit received by a customer from the purchase of that unit.
1. TRUE
2. TRUE
3. TRUE
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With a flexible exchange rate, a nation can choose an inflation rate independent of the rest of the world
Indicate whether the statement is true or false
Searching the internet for information to help select a product that is more reliable is most likely to be done by a
A) risk-averse person. B) risk-neutral person. C) risk-preferring person. D) This cannot be determined with the information provided.
If the Canadian government raises it budget deficit, then Canada's net capital outflows will
a. increase, so its exchange rate will rise. b. increase, so its exchange rate will fall. c. decrease, so its exchange rate will rise. d. decrease, so its exchange rate will fall.
During the early 1990s, many workers in military-related industries lost their jobs as the defense budget was reduced. Unemployment of this type is called
What will be an ideal response?