A geologist tells the ACME Mining Company she's certain there is a gold vein one thousand feet below the surface of its property, but ACME still decides not to mine for that gold. How would an economist explain their decision?
A) The owners of ACME aren't as greedy as other mining operations.
B) The owners of ACME probably distrust the geological reports.
C) The owners of ACME feel the additional costs of mining for gold outweigh the additional benefits.
D) The owners of ACME are ignorant of the basic principles of economics.
C
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Refer to the scenario above. What will be the GDP per capita of country A at the beginning of year 2012?
A) $2,410.26 B) $2,800 C) $2,760.24 D) $2,546.16
If a monopolistically competitive firm breaks even, the firm
A) is earning zero accounting and zero economic profit. B) should expand production. C) is earning an accounting profit and will have to pay taxes on that profit. D) should advertise its product to stimulate demand.
If an automobile manufacturer has an agreement with its tire supplier, this is an example of a ________ agreement.
A) rightward B) vertical C) horizontal D) leftward
In a fixed exchange rate regime, which of the following policies could lead to a greater trade deficit and leave aggregate demand constant?
A) Devalue the currency. B) Increase government spending. C) Decrease government spending. D) Decrease government spending and devalue the currency. E) Increase government spending and revalue the currency.