Use the following graph showing the demand and marginal revenue curves faced by a pure monopoly to answer the next question.
If the pure monopoly wants to sell quantity Q1, it should charge
A. P1.
B. P2.
C. 0.
D. a price not labeled on the graph.
Answer: A
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According to this Application, because Argentina pegged its currency to the U.S. dollar, the appreciation of the dollar caused a large trade deficit in Argentina. This trade deficit meant that
A) the demand for Argentinean pesos exceeded the supply of the pesos. B) the demand for Argentinean pesos exceeded the supply of U.S. dollars. C) the supply of Argentinean pesos exceeded the demand for the pesos. D) the supply of Argentinean pesos exceeded the demand for U.S. dollars.
M1 is a definition of money largely confined to which function(s) of money?
A) unit of account B) store of value C) medium of exchange D) B and C.
________ rational expectations, ________
A) Most people have always formed; but macroeconomists have only recently come to recognize this fact B) Macroeconomists have invented; and are trying to teach them to the general public C) Policy makers have devised; in search of more effective policies D) The latest information is an important input in; so most people must make do with adaptive expectations
Which of the following is the best example of a quota?
a. a tax placed on all small cars sold in the domestic market b. a limit imposed on the number of men's suits that can be imported from a foreign country c. a subsidy from the U.S. government to domestic manufacturers of men's suits so they can compete more effectively with foreign producers of men's suits d. a $100-per-car fee imposed on all small imported cars