In the above figure, the efficient quantity of magazines to produce per day is
A) 0, because that is where the marginal social benefit exceeds the marginal social cost by as much as possible.
B) more than 0 and less than 300,000 magazines.
C) 300,000 magazines.
D) more than 300,000 magazines.
C
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Which of the following transactions would be included in the GDP of the United States?
A. Honda produces cars in Ohio. B. Coca Cola produces soft drinks in England. C. McDonalds sells hamburgers in Russia. D. Ford Motor Company produces cars in Mexico.
A bank run involves a large flow of money
A. into bank depositors’ accounts. B. into checking and savings accounts. C. out of depositors’ accounts. D. out of individuals’ cash reserves into money market funds.
A U.S. automobile dealer has ordered a fleet of Japanese cars worth 10 million yen. The terms of payment is C.O.D. (cash on delivery). At the time the order was placed, the exchange rate was 100 yen per U.S. dollar. When the fleet arrived the exchange
rate had become 200 yen per U.S. dollar. A) This change in the foreign exchange rate will hurt the U.S. importer. B) This change in the foreign exchange rate will hurt the Japanese exporter. C) This change in the foreign exchange rate will benefit the U.S. importer. D) This change in the foreign exchange rate will benefit the Japanese exporter.
Suppose the economy is initially operating at point A in the above figure. Which of the following statements is TRUE?
A. An unexpected reduction in aggregate demand will cause the economy to move from point A to point C in the short run. B. An unexpected reduction in aggregate demand will cause the economy to move from point A to point B in the long run. C. An unexpected reduction in aggregate demand will cause the economy to move from point A to point B in the short run. D. none of these