Answer the following statement(s) true (T) or false (F)
1. Microeconomics is the study of the behavior of the overall economies of small countries.
2. Macroeconomics is the study of how certain occurrences affect the economy as a whole.
3. The supply of services is not part of the study of economies because it does not involve the exchange of goods.
4. Economics is the study of how goods and services are exchanged between individuals, businesses, and governments.
5. Traditional economies are the most common economies found in the world today.
1. False
2. True
3. False
4. True
5. False
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An important difference between a perfectly competitive firm and a monopolist is that
a. the perfectly competitive firm tends to be larger b. only the monopolist attempts to maximize profit c. only the perfectly competitive firm maximizes profit d. the perfectly competitive firm faces a horizontal demand curve and the monopolist faces a downward-sloping demand curve e. only the monopolist maximizes profit at the quantity where marginal cost equals marginal revenue
Suppose you bank at Bank A and you write a check to your friend, who banks at Bank B. After the check clears, _____
a. both Bank A's and Bank B's assets increase b. both Bank A's and Bank B's assets decrease c. Bank A's assets increase and Bank B's assets decrease d. Bank A's assets decrease and Bank B's assets increase e. there is an increase in the Federal Reserve's assets
The export supply curve is the portion of the domestic supply curve below the no-trade equilibrium price
a. True b. False Indicate whether the statement is true or false
A simple economy is characterised by the following equations: Ct = 200 + 0.5Y, It 3(Y - Y-1) and Yo Solve the difference equation. Hence, describe the time path. Will the system stabilize?