If resource prices are fixed and the selling price rises, then
A. profits will decrease.
B. profits will increase.
C. profits will remain constant.
D. both profits and output will decrease.
Answer: B
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When domestic and foreign currency bonds are imperfect substitutes, the domestic interest rate (R) can be written as
A) R = R - (Ee - E)/E + ?. B) R = R - (Ee - E)/E. C) R = R + (Ee - E)/E + ?. D) R = R - (Ee + E)/E + ?. E) R = R - (Ee - E)?.
If an epidemic hits a Malthusian economy, the immediate consequence is
A) an increase in the standard of living. B) a reduction in the standard of living. C) no change in the standard of living. D) dependent on the population growth rate.
Market economies have air and water pollution, but nonmarket economies
a. have much less pollution. b. have pollution that is much worse than in market economies. c. have about the same amount of pollution as market economies. d. don't generally suffer from external effects of any sort.
The opportunity cost of building a park in your hometown would be the
a. money cost of constructing the park. b. highest valued bundle of other goods and services that must be forgone because of the park construction. c. necessary increase in tax revenues to finance the construction. d. amount of time spent in leisure activities in the park once it is constructed.