An exchange rate is the number of units of:
a. a nation's money that is equal to one unit of another nation's money.
b. a nation's output that is equal to one unit of another nation's output.
c. gold backing a nation's money.
d. none of these.
a
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If the market price is $50 per unit for a good produced in a perfectly competitive market and the firm's average total cost is $52, then the firm
A) incurs an economic loss of $2 per unit. B) makes an economic profit of $2 per unit. C) makes zero economic profit. D) incurs a total economic loss of $52. E) More information is needed to determine the firm's economic profit or loss per unit.
Explain how lower tax rates might lead to higher reported GDP levels
Ireland's nominal GDP can increase when
a. only Irish prices increase b. only Irish output increases c. only Irish output and prices increase d. only Irish output and prices decrease e. any combination of Irish output and/or prices increases
What is the difference between an economic hypothesis and an economic theory?
a. A hypothesis is simplified; a theory is more complex. b. A hypothesis has yet to be tested; a theory has been tested and accepted. c. A hypothesis uses broad assumptions; a theory uses more specific assumptions. d. A hypothesis uses abstractions; a theory uses models.