Refer to the graph shown of a monopolistically competitive firm. If the firm maximizes profit, it will:
A. produce 5,000 dresses per year.
B. produce 8,000 dresses per year.
C. produce 12,000 dresses per year.
D. go out of business because it cannot earn a profit.
Answer: B
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A large and sudden currency depreciation is widely known as:
a. a managed float. b. a crawling peg. c. an exchange rate or currency crisis. d. a free float.
Since 1948, the average unemployment rate in the United States has been about
A) 3%. B) 6%. C) 8%. D) 10%.
Suppose the Economics Department has a graduation party for its students but as a final test they must show they have learned something about trade. The men are given food when they walk in and the women are given drink. Suppose they have identical preferences where food and drink provide utility U = F?D? . The exchange would be such that
a. both would be guaranteed to be better off than when they entered. b. both would be guaranteed to be at least as well off as when they entered. c. the men would end up with more. d. the women would end up with more.
Suppose the Social Security Administration would like to guarantee the purchasing power of social security payments to the elderly does not diminish
That is, the real value of the payments does not decrease. The CPI in 1990 was 130.7 and the CPI in 1998 was 163.0. How much does the Social Security Administration need to increase payments from 1990 to 1998 to accomplish this objective?