If a country fixes its exchange rate below the equilibrium value,
a. the central bank must buy its own
b. there will be downward pressure on the exchange rate
c. its currency will appreciate
d. the result is an excess demand for that country's currency
e. its currency will depreciate
D
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A market with two sellers is called a:
A. monopoly. B. perfectly competitive market. C. duopoly. D. biopoly.
Java Joe sells 200 cups of coffee each day in a perfectly competitive market at the market price of $2.00 per cup. If Java Joe independently decreased its price per cup to $1.50,
a. its sales would rise to 250 cups b. its revenue would decrease c. its revenue would rise d. its total revenue would equal $200 e. the market price will fall to $0.75 as other coffee sellers match the price cut
Government failure refers to
a. a mismatch between employer incentives and firm objectives b. the failure of government to provide an efficient quantity of public goods c. the inability of firms to produce output efficiently d. the overabundance of competitors with government in production e. the under-allocation of tax revenues
If the unit price of a product is P, then the amount of spending that the buyers would need to pay for a given quantity Q is equal to:
A. P x Q B. P + Q C. P - Q D. Q - P