A profit-maximizing, single-price monopoly must lower its price in order to sell more output
a. True
b. False
A
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The nominal exchange rate is the
A) domestic currency price of foreign currency. B) foreign currency price of domestic currency. C) price of domestic goods in terms of foreign goods. D) price of foreign goods in terms of domestic goods.
If incomes are rising, in the market for an inferior good,
a. its price will rise and the quantity exchanged will rise. b. its price will rise and the quantity exchanged will fall. c. its price will fall and the quantity exchanged will rise. d. its price will fall and the quantity exchanged will fall.
According to the Stolper-Samuelson theorem, a price change that reduces a country's production of its exportable product would
A. reduce the returns to the factor of production used intensively in the export industry. B. raise the returns to all factors of production within the country. C. reduce the returns to the factor of production used intensively in the import-competing industry. D. reduce the returns to all factors of production within the country.
Because the benefits derived from an activity decline as it is expanded, it is generally
a. wise to undertake all actions that generate benefits. b. efficient to stop well before perfection is achieved. c. best to continue as long as it is possible to derive some additional benefits. d. unwise to engage in activities for which the benefits decline as you do more of it.