Money eliminates the need for a coincidence of wants primarily through its use as a:
A. store of value.
B. medium of exchange.
C. unit of account.
D. standard of confidence.
Answer: B
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If one firm in a duopoly increases its production by one unit beyond the monopoly output, that firm's profit ________, the other firm's profit ________, and the total profit of the duopoly ________
A) increases; increases; increases B) does not change; does not change; does not change C) increases; decreases; does not change D) increases; does not change; increases E) increases; decreases; decreases
Kirk consumes normal goods. If Kirk's income decreases and the prices of all goods remain unchanged, in his new consumer equilibrium, his marginal utility from each good will ________ and his total utility will ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Jane has just sent a gift that was made in the U.S. to her relatives in Italy. As far as the balance of payments is concerned this gift will
A) have no influence on the balance of payments since it was made in the U.S. B) be part of the capital account since the gift is a physical item. C) be considered an export since it has left the U.S. D) be part of the current account as a unilateral transfer.
A firm with substantial market power must be in a ____________ industry
a. monopoly or oligopoly b. perfectly competitive c. monopolistically competitive d. perfectly competitive or monopolistically competitive e. perfectly competitive or a monopoly