When the price of a product increases, the marginal revenue product curve in a perfectly competitive market
A) does not change.
B) becomes flatter.
C) shifts to the right.
D) shifts to the left.
C
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The interest rate that banks charge on loans to their best customers is called the:
A) federal funds rate. B) discount rate. C) mortgage interest rate. D) prime rate.
A country would tend to experience currency depreciation relative to other countries if: a. the profitability of investments within the country increases relative to the rest of the world. b. people in the foreign currency markets expect the value of the currency to rise in the near future. c. the foreign demand for its exports decreases
d. none of the above
People living in the town of Norwich, England, have begun a system of trade called the LETS, which allows people to enter into exchanges without using the British pound. Members offer a particular service, such as babysitting, gardening, and plumbing for which they get Croy credits. They can then use these Croys to buy services from other people. Does this system represent what economists call barter?
A. No, to be true barter, the exchange rate between the Croy and the British pound must be flexible. B. Yes, because the Croy is not real money but just a bookkeeping account. C. Yes, because it does not use the true money, the British pound. D. No, this group has merely replaced one money, the pound, with a less flexible medium of exchange that they call the Croy.
A monopolist wishing to increase its profit has just discovered that lowering its price and selling more output yielded the desired result. Profit increased. Based on this, we can conclude that the cost of the additional production is
A) greater than the revenue from the additional production. B) precisely equal to the revenue from the additional production. C) less than the revenue from the additional production. D) there is no way to answer this because you have not given us the marginal revenue and marginal cost data.