When two countries choose to use a new currency, they are
A) participating in a monetary union.
B) dollarizing.
C) forming an optimal currency area.
D) increasing their monetary autonomy.
A
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Total revenue earned from the sale of a good is:
A) the price at which the good is sold. B) the difference between price and cost of production of the good. C) the product of price and quantity of the good sold in the market. D) the product of cost of production and quantity of the good sold in the market.
Consider a market for used cars. Suppose there are only two kind of cars: lemons and good cars. A lemon is worth $1,500 both to its current owner and to anyone who buys it. A good car is worth $6,000 to its current and potential owners
Buyers can't tell whether a car is a lemon until after they have bought the car. What do economists call the problem that buyers of used cars face? What is the price of a used car? Explain and substantiate your answer.
Suppose the demand in a certain duopoly market with homogenous goods is Qd = 8,000 - 100P. The two firms in the market are firm V and firm W, and the marginal cost of producing the goods in question is equal to $25. Which of the following describes the Nash equilibrium in this market?
A. QV + QW = 2,750 B. One of the firms produces 5,500 units of output, and one of the firms does not produce. C. QV = QW = 5,500 D. QV = QW = 2,750
The Monetarist model differs from the classical model in that
a. changes in aggregate demand, not aggregate supply, drive changes in output. b. changes in the money supply drive changes in inflation inflation. c. changes in aggregate supply, not aggregate demand, drive changes in ouput. d. money demand is not always stable. e. none of the above.