An exchange-rate system in which the nominal exchange rate is set by the government is known as
A. an exchange-rate union.
B. a floating exchange-rate system.
C. a fixed exchange-rate system.
D. a flexible exchange-rate system.
Answer: C
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Which of the following is NOT a non-price determinant of demand?
A) the price of the good or service B) tastes and preferences C) expectations of future prices D) prices of related goods and services
Which of the following statements best describes the price, output, and profit conditions of monopolistic competition?
a. Price will equal marginal cost at the profit-maximizing level of output; profits will be positive in the long-run. b. Price will always equal average variable cost in the short run and either profits or losses may result in the long run. c. Marginal revenue will equal marginal cost at the short run, profit-maximizing level of output; in the long run, economic profit will be zero. d. Marginal revenue will equal average total cost in the short run; long-run economic profits will be zero.
Assume that eggnog and cookies are complements. If the price of eggnog goes up, what happens to the demand for cookies?
a. demand for cookies increases b. demand for cookies decreases c. demand for cookies remains unchanged d. the shift in demand will depend on the original price of cookies
What is a labor union?
a. a group of workers that forms a collective to assume ownership of a company b. a governing board that oversees hiring and promotions at large manufacturers c. a partnership between the owners of the means of production and the workers d. a workers’ organization formed to negotiate fair pay and safer working conditions