Tony's Italian Ice is a monopolistically competitive firm. If Tony's earns a profit in the short run, which of the following is most likely to occur?
A) New firms that sell Italian ice will enter the market and Tony's demand curve will shift to the right.
B) New firms that sell Italian ice will enter the market and Tony's demand curve will become more inelastic.
C) New firms that sell Italian ice will enter the market and Tony's cost curves will shift to the left.
D) New firms that sell Italian ice will enter the market and Tony's demand curve will shift to the left.
D
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A decrease in the nominal exchange rate, e, defined as the number of units of the foreign currency that one unit of the domestic currency will buy, indicates that the domestic currency has ________ relative to the foreign currency.
A. become undervalued B. become overvalued C. depreciated D. appreciated
Suppose there is a simultaneous increase in the demand for wheat and increase in the supply of wheat. Which of the following will occur as a result of these simultaneous events?
A) Both the market clearing price and equilibrium quantity will rise. B) The market clearing price will fall, but the equilibrium quantity will rise. C) The market clearing price may rise, fall, or stay the same, but the equilibrium quantity will rise. D) The market clearing price will fall, but the equilibrium quantity may rise, fall, or stay the same.
In the ordered pair (20, 30), 20 is the
a. the x-coordinate. b. the horizontal location of the point. c. the y-coordinate. d. Both a and b are correct.
Suppose that 1983 is the base year for the Consumer Price Index (CPI) and in 2014 the CPI was 220. What does this "220" mean?
A) What cost $100 in 1983 on average cost 2.20 times as much in 2014. B) What cost $100 in 1983 on average cost $220 more in 2014. C) What cost $100 in 1983 on average cost 0.22 times as much in 2014 (that is, it cost $22 in 2014). D) What cost $100 in 1983 on average cost $22 more in 2014.