Refer to the diagram above, which represents a country's supply and demand for an internationally traded good. If PW is the world price, and a foreign country engages in dumping by selling at P2, total domestic consumption will ________ to ________
A) increase; Q2
B) decrease; zero
C) increase; Q5
D) increase; Q3
C
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When the firms in a perfectly competitive market are incurring economic losses, some of the firms will exit the market, causing the supply curve to shift left and market price to rise until losses incurred by the remaining firms are eliminated
Indicate whether the statement is true or false
The speculative motive for holding money is closely tied to what function of money?
A) store of wealth B) unit of account C) medium of exchange D) standard of deferred payment
The marginal cost will intersect the average variable cost curve
A) when the average variable cost curve is rising. B) where average variable cost curve equals price. C) at the minimum point of the average variable cost curve. D) The two will never intersect.
The store of value characteristic of money refers to the fact that:
A. people save most of their money. B. money is not valuable unless it is stored. C. money allows people to shift purchasing power into the future. D. money is the only way people have to store value.