The United States is an example of
A) a customs union.
B) a free trade area.
C) an economic union.
D) a common market.
C
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Which of the following statements about M1 and M2 is not true?
A) Transaction accounts are part of M1. B) M2 is more liquid than M1. C) M2 is larger than M1. D) Transaction accounts are part of M2.
Suppose the price of good X falls and the consumption of good X increases. From this we can infer that X is a(n) (i) normal good. (ii) inferior good. (iii) Giffen good
a. (i) only b. (i) or (ii) only c. (iii) only d. (ii) or (iii) only
The three major economic questions concerning production of good and services must be asked because of ______.
a. surplus b. technology c. scarcity d. currency
Widgets R Us, which is a price-taking firm, is currently producing 250 units of output. The market price is $3 per unit, the marginal cost of the 250th unit is $2.75, average total cost is $3.50 per unit, and average variable cost is $2.50 per unit
What advice should you give Widgets R Us? A) Increase output to reduce losses. B) Continue to produce 250 units in the short run. C) Shut down to minimize losses. D) Decrease output to 200 units.