A perfectly competitive firm facing a price of $50 decides to produce 500 widgets. Its marginal cost of producing the last widget is $50. If the firm's goal is maximize profit, it should:
A. shut down.
B. continue producing 500 widgets.
C. produce fewer widgets.
D. produce more widgets.
Answer: B
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The ratio of the dollar price of a toy in the U.S. to the dollar price of a toy in China represents the ________ between the two currencies
A) nominal exchange rate B) ordinal exchange rate C) expected exchange rate D) real exchange rate
How would poverty be affected in the United States if the measure were changed to a more comprehensive one that included the value of in-kind transfers, medical services, and taxes?
What will be an ideal response?
Risk premium is
A. the benefits of buying from a trustworthy institution. B. the additional payment paid by bonds issued by the federal government. C. the tendency of some investors to incur in high risk. D. a payment differential necessary to compensate the investor for having to bear a risk.
Barter is a system of exchange in which people directly trade one good for another, without using money as an intermediate step.
Answer the following statement true (T) or false (F)