When a perfectly competitive firm increases output, total revenue:
A. decreases, because there is no price effect.
B. increases, because there is no quantity effect.
C. decreases, because there is no quantity effect.
D. increases, because there is no price effect.
Answer: D
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Roughly what percent of American families lived below the poverty line in 1960?
A) 8% B) 18% C) 28% D) 38% E) 48%.
If real interest rates in the United States are higher than those of our trading partners, what will tend to happen to the foreign exchange value of the dollar and the U.S. current account deficit or surplus?
a. The dollar will depreciate; the current account will move toward a deficit. b. The dollar will depreciate; the current account will move toward a surplus. c. The dollar will appreciate; the current account will move toward a deficit. d. The dollar will appreciate; the current account will move toward a surplus.
Suppose the marginal utility of a dollar for Carl is 7 utils and for Judy, 12 utils. According to Lerner, society will maximize its total utility if
a. we transfer money from Carl and give it to Judy as long as the marginal utility of money for Carl is lower than that of Judy's b. we transfer money from Carl and give it to Judy as long as the marginal utility of money for Carl is higher than Judy's c. we transfer money from Judy and give it to Carl as long as the marginal utility of money for Judy is lower than Judy's d. we allow the market to determine the marginal utilities of Carl and Judy regardless of whose is higher e. Carl and Judy have the same utility functions
If prices in the United States fall relative to Japan, then the:
a. Dollar depreciates because U.S. imports from Japan fall, and U.S. exports to Japan rise. b. Yen depreciates because U.S. imports from Japan fall, and U.S. exports to Japan rise. c. Yen depreciates because U.S. imports from Japan fall, and U.S. exports to Japan fall. d. Yen depreciates because U.S. imports from Japan rise, and U.S. exports to Japan fall. e. Change in the value of the dollar or yen is uncertain because exports and imports rise.