A firm's marginal revenue is defined as
a. the ratio of total revenue to total quantity produced.
b. the additional output produced by lowering price.
c. the additional revenue received due to technical innovation.
d. the additional revenue received when selling one more unit of output.
d
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If elected officials prefer policy actions that make benefits available quickly while deferring costs, they will be inclined to favor
A) an easier monetary policy to counter recession. B) increased appropriations to provide jobs for unemployed workers. C) a wage and price freeze to control inflation. D) all of the above. E) none of the above.
There are two closely related crops, X and Y, with the following demand functions QX = 180 - 2PX + PY and QY = 150 + PX - PY where QX is the quantity of X, PX is the price of X, QY is the quantity of Y, and PY is the price of Y
These two crops are grown in two widely separated countries so there is no interrelationship between the supply curves. The short-run perfectly inelastic supply for X is 200 while the short-run perfectly inelastic supply for Y is 100. In equilibrium, the prices are A) PX = 30, PY = 80 B) PX = 40, PY = 60 C) PX = 60, PY = 120 D) PX = 80, PY = 130
An appreciation of the dollar against all currencies in the foreign exchange market would result in all of the following, except:
a. a decrease in the dollar prices paid by U.S. importers. b. an increase in the cost of vacations in Florida for Japanese tourists. c. foreign holidays for U.S. residents to be less expensive. d. an increase in the foreign currency prices paid for U.S. exports. e. an increase in the demand for U.S. exports.
Assume you have $2,000 in a savings account at the beginning of the year and the price level is equal to 100. If the price level is equal to 120 at the end of the year, the real value of your savings is closest to
A. $1,880. B. $2,120. C. $1,667. D. $2,400.