In the above figure, if the firm is producing Q1 units at a price P1, the firm should
A) increase output and decrease price.
B) decrease output and increase price.
C) not change output or price.
D) shut down.
A
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The money price of a good is that price
A) expressed in constant 2005 dollars. B) expressed in purchasing power against a common item like bread. C) expressed in today's dollars. D) that would clear the market.
Where there is asymmetric information between buyers and sellers:
A. product shortages will occur at the equilibrium price. B. product surpluses will occur at the equilibrium price. C. markets can produce inefficient outcomes. D. markets will fail due to the "free-rider problem."
The figure below depicts the IS-LM-FE model with floating exchange rates.
Following the shift of the economy from point A to point B, the shift of the IS curve from IS1 to IS2 was caused by
A. a worsening of international price competitiveness. B. an improvement in the current account position. C. official intervention in the foreign exchange market. D. a contractionary monetary policy.
Colluding oligopolists face a conflict between maximizing joint market profit or their own market share.
Answer the following statement true (T) or false (F)