Which of the following is TRUE of the price charged by a monopolistically competitive firm at the profit-maximizing level of output?
A) P > MC
B) P = MC
C) P = MR
D) P < AVC
Answer: A
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Net exports are negative when
A. imports exceed exports. B. depreciation exceeds exports. C. exports exceed imports. D. net exports exceed imports.
The figure above shows the demand for and supply of labor of students in Smallville. If the minimum wage is set at $8 per hour, how many hours of students' labor are unemployed?
A) 12,000 hours B) 9,000 hours C) 6,000 hours D) 0 hours
If both of two goods have price elasticities of demand, price elasticities of supply, income elasticities of demand and cross elasticities of demand all equal to 2.0: a. They are both normal and substitutes
b. They are both normal and complements. c. They are both inferior and substitutes. d. They are both inferior and complements.
The phrase "a weaker U.S. dollar" means that the dollar
a. has been depreciating b. has been appreciating c. is not in equilibrium on the foriegn exchange market d. is fluctuating greatly e. buys less than one unit of a foreign currency