If the Federal Reserve decreases the Federal funds rate, other short-term interest rates ________ and the exchange rate ________
A) fall; falls
B) do not change; rises
C) fall; does not change
D) fall; rises
E) do not change; falls
A
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The above figure shows the cost curves for a typical firm in a competitive market. Note that if p = 10, then MC = p at both q = 5 and q = 60. Can they both yield maximum profit? Explain
What will be an ideal response?
Economic behavior is always rational
a. True b. False Indicate whether the statement is true or false
Suppose Country A is better than Country B at producing all goods. Which of the following statements is true?
A. Country A's superior productivity will lead to higher domestic prices, so trade between the two countries could only benefit Country A. B. As long as the opportunity cost of producing the goods differs between the countries, there will still be opportunities for mutually beneficial trade. C. Trade between Country A and Country B is likely only to benefit Country B since it does not have the productivity advantage that Country A does. D. Country A will have a lower opportunity cost than Country B for the production of all goods.
Which area in the above figure equals the producer surplus under perfect price discrimination?
A) A + B + C + D + E + F + G + H + I + J + K + L B) A + B + C + D + E + F + G + H + I + J + K C) A + B + C + D + E + F + G + H D) C + D + E + F + G + H