If an economy has a trade policy of a fixed exchange rate, then its monetary and fiscal policies are:
A. more restricted when dealing with domestic goals.
B. less restricted when dealing with domestic goals.
C. independent of the trade policy.
D. independent of the trade regime.
Answer: A
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The figure above shows a perfectly competitive firm. When the firm maximizes its profit, its total revenue is
A) $1,200. B) $900. C) $600. D) unable to be determined without more information.
Why are demand and marginal revenue represented by the same curve for a firm in a perfectly competitive market, but by separate curves for a firm in a monopolistically competitive market?
What will be an ideal response?
At least one economist has suggested that even large developing-country cities are economically too small. What argument would support this contention? How would you argue against it?
What will be an ideal response?
The long run success of a collusion a. Is limited by ease of entry into the industry
b. Is enhanced by ease of entry into the industry. c. Is unaffected by the ease of entry into the industry. d. Could be either limited by or enhanced by ease of entry into the industry.