Figure 6.4 represents a perfectly competitive firm's costs. Illustrate the firm's short-run supply curve on the graph. Explain.
What will be an ideal response?
The firm's short-run supply curve is the part of its short-run marginal cost curve above the shut-down price. On Figure 9.4, the shut-down price is $10, which is at the minimum point of the SAVC curve. Thus, the firm's short-run supply curve is the part of its SMC curve above that point.
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Adoption of a currency board
A) is one method for achieving a soft peg policy. B) places responsibility for exchange rate management in the hands of an agency that is independent of political influences. C) mandates the use of currency in all domestic transactions. D) requires that a centralized institution holds interest-bearing assets denominated in the currency against which the nominal exchange rate is being fixed.
The Articles of Confederation and Perpetual Union (1781) adequately addressed the free-rider problems by setting up a tax system that required all states to share the costs of providing national defense, protecting private property rights, regulating
commerce with other countries and across states and upholding a system of laws. Indicate whether the statement is true or false
Is it correct to say that if the total balance of payments does not equal zero, then the reserves account will automatically adjust to ensure it equals zero
a. Yes. b. No. c. The answer is "maybe" because it always depends on the circumstances.
The most affordable places to live tend to be located disproportionately in
A. Michigan, Ohio, and Illinois. B. Mississippi and Louisiana. C. California, New York, and New Jersey. D. all of these, because affordable places to live are randomly distributed geographically.