Total revenue for a perfectly competitive firm producing six units of output is $48. Total revenue for producing eight units of output is $64. Given this information, the:
A. average revenue for producing eight units is $16.
B. marginal revenue for producing the eighth unit is $16.
C. firm should raise its price.
D. marginal revenue for producing the eighth unit is $8.
Answer: D
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If the exchange rate is constant and U.S. exports increase, then in the foreign exchange market the
A) supply of U.S. dollars increases. B) demand for U.S. dollars increases. C) demand for U.S. dollars decreases. D) quantity of U.S. dollars demanded decreases. E) quantity of U.S. dollars demanded increases.
The flaw of the Classical model of the business cycle is that it
A) assumes away output fluctuations. B) assumes complete wage rigidity. C) assumes unrealistic fooling of workers. D) requires procyclical wage movements and continuous labor market equilibrium.
Which group is most likely to be adversely affected by the importation of foreign steel?
A. Domestic steelworkers. B. Consumers of domestic automobiles for which steel is an input. C. Foreign steel producers. D. Domestic automobile workers.
In the long run, output is determined solely by the supply of capital and the supply of labor, not the price level.
Answer the following statement true (T) or false (F)