The government adds to its overall public debt whenever it:
A. Runs a budget deficit
B. Increases money supply in the economy
C. Buys government bonds
D. Raises tax collection
A. Runs a budget deficit
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An individual firm's best response:
A. is the firm's most profitable choice given the actions of its rivals. B. is not necessarily selected by all firms in a Nash equilibrium. C. is always the option with the highest price for each firm. D. is to set the same price and quantity as all of its rivals.
It has become largely accepted since the end of the Bretton Woods agreement that: a. the gold standard was superior to anything that has come along since
b. governments have no role whatsoever in determining exchange rates. c. it is not necessary for governments to fix exchange rates for long periods of time. d. floating rates simply have not worked.
The price of $10 in the graph above represents
A. a price floor.
B. a price ceiling.
C. either a price floor or a price ceiling.
D. neither a price floor nor a price ceiling.
Marginal cost is the minimum price that producers must receive to induce them to produce another unit of a good or service
Indicate whether the statement is true or false