As long as the firm illustrated above remains open, it will set a price of ________ per month and it will ________
A) $50; earn an economic profit
B) $50; incur an economic loss
C) $40; earn an economic profit
D) $40; incur an economic loss
E) less than $20; incur an economic loss
B
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The profit-maximizing rule for a monopolistically competitive firm is to select the quantity at which
A) average revenue equals average total cost. B) price equals marginal cost. C) average revenue exceeds marginal cost by the greatest amount. D) marginal revenue equals marginal cost.
A key distinction between microeconomics and macroeconomics is the use of monetary policy. Monetary policy is conducted by:
a. local banks. b. a nation’s central bank. c. a nation’s legislative body. d. a state’s legislative body.
In 2008, $1.00 U.S. bought 8.24 Chinese Yuan and in 2010, it bought 6.64 Chinese Yuan. Therefore, 1.00 Chinese Yuan was worth _____ U.S. in 2008 and _____ U.S. in 2010
a. $0.12; $0.15 b. $1.20; $1.5 c. $0.82; $0.66 d. $0.15; $1.1
GDP excludes important factors that affect people's well-being, such as the value of:
A. leisure time. B. goods produced domestically but sold to foreigners. C. government purchases of goods and services. D. services purchased by households.