A perfectly competitive firm is hiring variable resources M and N. It will minimize total costs
A) MRPm/MFCm = MRPn/MFCn.
B) MRPm ? MFCm = MRPn ? MFCn.
C) Pm/MPPm = Pn/MPPn.
D) MPPm/Pm = MPPn/Pn.
Answer: D
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Yesterday, the dollar was trading in the foreign exchange market at 1.10 euros per dollar. Today, the dollar is trading at 1.05 euros per dollar. The dollar has ________ and a possible reason for the change is ________ in the U.S. interest rate
A) depreciated; a decrease B) appreciated; a decrease C) depreciated; because there has been no change D) appreciated; an increase E) depreciated; an increase
Refer to the figure above. What is the domestic demand for calculators in Barylia, once the economy opens up to free trade?
A) 20 units B) 50 units C) 60 units D) 100 units
One thing that distinguishes normative economic principles from positive economic principles is that:
A. normative principles tell us how people will behave, and positive principles tell us how people should behave. B. normative principles are pessimistic and positive principles are optimistic. C. normative principles tell us how people should behave, and positive principles tell us how people will behave. D. normative principles reflect social norms, and positive principles reflect universal truths.
Only marginal costs, not sunk costs, affect economic decisions if individuals are rational.
Answer the following statement true (T) or false (F)