According to the law of supply, when prices increase,
a. demand increases
b. quantity demanded increases
c. supply increases
d. quantity supplied increases
Answer: d. quantity supplied increases
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According to the U.S. Treasury,
A) creditors do not have to accept cash in payment of debts. B) U.S. dollars must be accepted as payment for any good or service sold in the United States. C) firms do not have to accept cash as payment for goods and services. D) the government will not accept cash in payment of taxes.
In the short run, a firm can minimize its total costs of production by operating at the minimum of its average total cost curve
Indicate whether the statement is true or false
In a fixed exchange rate system
A) market forces and the country's stock of gold determine its exchange rate. B) a central bank affects the value of a currency by changing its foreign exchange reserves. C) market forces play a role in determining the fixed value of a currency. D) the International Monetary Fund determines exchange rates.
Assume the Backwoods Shoe Company hires three inputs: labor (L), capital (K), and land (A) to produce shoes (X). Which of the following conditions must be met so that the firm is using the optimal, or least costly, combination of inputs?
A. MPL/PL = MPK/PK = MPA/PA B. MPL = MPK = MPA = 1/PX C. PL = PK = PA D. MPL = MPK = MPA