Under perfect competition, the demand curve facing the firm is determined by
A) the intersection of the industry demand and supply curves.
B) the tastes and preferences of consumers.
C) utility maximizing behavior on the part of consumers.
D) the willingness of the firm to supply the good.
Answer: A
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If the world real interest rate were 6% and the domestic real interest rate in Estonia was 4%, borrowers in Estonia would borrow at the rate of ________ and lenders in Estonia would lend at the rate of ________
A) 6%; 6% B) 6%; 4% C) 4%; 6% D) 4%; 4%
Which of the following is a primary objective of monetary policy?
A) achieving a zero natural rate of unemployment B) targeting a zero rate of inflation C) achieving price stability D) all of the above E) none of the above
If a firm used a combination of inputs that was to the left of its isocost line, it would indicate that
A) it is exceeding its budget. B) it is not spending all of its budget. C) it is operating at its optimal point because it is saving money. D) None of the above
Figure 10-2
At which point in is the economy at long-run equilibrium?
a.
J
b.
F
c.
G
d.
H