The law of one price should hold well for
A) differentiated products.
B) any individual goods traded internationally.
C) homogeneous goods.
D) All of the above.
C
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Use the following graph to answer the next question.
Which of the following factors will shift AD1 to AD2?
A. An increase in national incomes abroad. B. An increase in real interest rates. C. A decrease in the value of financial assets. D. A decrease in the general price level.
If the long-run real interest rate falls, ________
A) unemployment increases B) investment by firms decreases C) the demand for loans decreases D) investment by firms increases
Answer the following statement true (T) or false (F)
1) Property rights over fish in the open ocean exist once the fish are caught. 2) Fisheries have been overexploited relative to forests primarily because people care more about trees than fish. 3) TAC policies help reduce overfishing and reduce costs for fishers. 4) Total allowable catch policies promote economic efficiency better than individual transferable quotas.
When a monopolist sells two units of output its total revenues are $100. When the monopolist sells three units of output, its price per unit is $35. The monopolist's marginal revenue from selling the third unit of output is:
A. $5. B. $33.33. C. $35. D. $105.