Suppose a firm has the following total cost function: TC = 50 + 2q2. What is the minimum price necessary for the firm to earn profit?
A) p = $20
B) p = $30
C) p = $35
D) p = $40
A
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Suppose that today 1 British pound exchanges for $1.60. If next week 1 pound exchanges for $1.70, it is clear that
A. The dollar has appreciated relative to the pound. B. The pound has depreciated relative to the dollar. C. The dollar has depreciated relative to the pound. D. Both currencies have appreciated.
The sales tax is a regressive tax because the:
A. percentage of income paid as taxes is constant as income rises. B. percentage of income paid as taxes falls as income rises. C. tax tends to reduce the total volume of consumption expenditures. D. administrative costs associated with the collection of the tax are relatively high.
Other things equal, if $100 billion of government purchases (G) is added to private spending (C + I g + X n ), GDP will:
A. increase by $100 billion. B. increase by less than $100 billion. C. increase by more than $100 billion. D. fall by $100 billion.
Since the 1950s, U.S. exports have generally ________ as a share of GDP, while U.S. imports have generally ________ as a share of GDP.
A. risen; risen B. fallen; fallen C. risen; fallen D. fallen; risen