Which of the following is true?
a. If the Australian dollar depreciates, the Australian trade deficit decreases, since Australian products become cheaper to foreigners.
b. If the Australian dollar depreciates, the Australian trade deficit decreases, since Australian products become more expensive to foreigners.
c. If the Australian dollar depreciates, the Australian trade deficit increases, since Australian products become more expensive to foreigners.
d. If the Australian dollar appreciates, the Australian trade deficit decreases, since Australian products become cheaper to foreigners.
e. If the Australian dollar appreciates, the Australian trade deficit decreases, since Australian products become more expensive to foreigners.
A
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In the above figure, what is the efficient quantity of hot dogs to produce?
A) 2 thousand per day B) 4 thousand per day C) 6 thousand per day D) The efficient quantity cannot be determined without knowing the PPF for this economy.
The perfectly competitive firm’s short-run shutdown rule is to shut down immediately if
A. TR < TC. B. TR < SRFC. C. TR < SRVC. D. TR < MC > Q.
Which of the following is a valid difference between sole proprietorship and partnership?
a. Partnerships require a written agreement while sole proprietorships do not. b. Partnerships require a state charter while sole proprietorships do not. c. Partnerships generate lower profits than sole proprietorships. d. Partnerships are characterized by unlimited liability, while sole proprietorships are not. e. Partnerships consist of two or more partners sharing the responsibility of the firm, while sole proprietorship consists of a single individual.
Rational choice requires that opportunity cost be
a. ignored in making a decision. b. considered for individual choices, but not for societal choices. c. computed, but not actually used in making a decision. d. considered as part of making a decision. e. used as the sole decision criterion.