If both imports and exports rose,
a. AD would decrease
b. AD would increase.
c. AD would decrease if exports rose more than imports.
d. AD would increase if exports rose more than imports.
d
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Producer surplus is the difference between the highest price someone is willing to pay and the price he actually pays
Indicate whether the statement is true or false
Repurchase agreements are often used to
A) increase bank reserves permanently. B) increase bank reserves temporarily. C) reduce bank reserves permanently. D) reduce bank reserves temporarily.
Kyle receives two free passes to the symphony as a bonus at work. He has never been to the symphony before and would probably not buy such tickets for their face value of $120. Kyle decides to use the tickets rather than sell them at face value. This type of behavior is:
A. irrational, since Kyle would not pay $120 for the tickets, yet gives up $120 by not selling them. B. rational, since Kyle can check out the symphony and not have to pay for it himself. C. irrational, since Kyle ignores his sunk cost of $120. D. rational, since Kyle does not ignore his sunk cost of $120.
In the short run, a firm will stay in business as long as:
a. price equals average revenue. b. marginal revenue is greater than or equal to marginal cost. c. price exceeds average variable cost. d. price is less than average variable cost.