If someone in the United States buys a surfboard produced in Australia, then that purchase is included in both the consumption component of U.S. GDP and the net exports component of U.S. GDP
a. True
b. False
Indicate whether the statement is true or false
True
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For a demand curve to be upward sloping, the good would have to be an inferior good, and
A) the income effect would have to be smaller than the substitution effect. B) the income effect would have to be larger than the substitution effect. C) the income effect would have to be equal to the substitution effect. D) the income effect and the substitution effect would have to be nonexistent.
Suppose a market has the demand function Qd=20-0.5P. At which of the following prices will total revenue be maximized?
a. $10 b. $20 c. $30 d. $40
If 1 euro is priced at $1.25 and if 1 euro will also buy 88 Japanese yen($1 = ¥88), in equilibrium, with no arbitrage opportunities, how much is the cross rate between the yen and the dollar (yen-dollar rate)?
a. ¥150/$ b. ¥70.4/$ c. ¥20/$ d. ¥5/$
If a firm in a perfectly competitive market faces the cost curves in the graph shown and observes a market price of $13, the firm:
A. should continue to operate in the short run, but plan to exit in the long run. B. cannot make positive profits and should shut down in the short run. C. can make positive profits by producing more than 35 units. D. can make positive profits by producing where MC = MR.