Refer to the diagram. In short-run equilibrium, the monopolistically competitive firm shown will set its price:
A. will realize allocative efficiency at its profit-maximizing output.
B. cannot operate at a loss.
C. is in long-run equilibrium.
D. is realizing an economic profit.
D. is realizing an economic profit.
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In comparison to most developed economies, developing countries:
A. offer about the same degree of currency convertibility. B. offer greater currency convertibility. C. offer more restricted currency convertibility. D. sometimes offer higher levels of currency convertibility and sometimes offer lower levels.
Kobe has just eaten another cookie and his total utility increased. This means that Kobe's marginal utility for this additional cookie is
A. positive. B. negative. C. zero. D. not determinable without more information.
Suppose there is a $200 billion increase in government spending. We know that this increase in government spending will cause which of the following to occur?
A) equilibrium real GDP will increase by exactly $200 billion. B) an increase in equilibrium real GDP and an increase in the multiplier. C) an increase in equilibrium real GDP and a reduction in the multiplier. D) an increase in equilibrium real GDP and no change in the multiplier.
The federal budget is defined as
A) an annual statement of expenditures and tax revenues of the U.S. government. B) a monthly statement of whether the U.S. government is in deficit or surplus. C) a monthly statement of expenditure laws passed by the U.S. government. D) an annual statement of what policy actions the U.S. government has pursued. E) an annual statement of U.S. government violations of international laws.