Which of the following is most effective under a fixed exchange-rate regime?
A. Fiscal policy if there is a high capital mobility
B. Monetary policy if there is a low capital mobility
C. Fiscal policy if there is a low capital mobility
D. Monetary policy if there is a high capital mobility
Answer: A
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Refer to the table below. If Sweet Grams is a perfectly competitive firm and the market price $1.25 per unit, what is the profit-maximizing quantity for Sweet Grams to produce at Plant 1?
Sweet Grams makes graham cracker snack packages. Sweet Grams is a multi-plant firm with two production facilities. The above table summarizes the total marginal cost of production at various output levels in the separate plants. Assume Sweet Grams is a perfectly competitive firm.
A) 27,000
B) 30,100
C) 36,000
D) 24,500
If the quantity supplied of candy increases by 10% when the price of candy increases by 20%, which of the following is TRUE?
A) Supply for candy is elastic, and price elasticity of supply = 2.0. B) Supply for candy is inelastic, and price elasticity of supply = 2.0. C) Supply for candy is elastic, and price elasticity of supply = 0.5. D) Supply for candy is inelastic, and price elasticity of supply = 0.5.
Consider the production possibilities frontier displayed in the figure shown. The opportunity cost of one watermelon is:
A. 10 bushels of apples.
B. 20 bushels of apples.
C. 30 bushels of apples.
D. 40 bushels of apples.
The value of an object on which a tax is levied is known as the
a. tax rate. b. tax impact. c. tax base. d. tax incidence.