If a firm in a perfectly competitive market faces the curves in the graph shown and observes a market price of $16, the firm:
A. can make positive profits by producing less than 43 units.
B. can make positive profits by producing where MC = MR.
C. cannot make positive profits and should shut down in the short run.
D. should continue to operate in the short run, but plan to exit in the long run.
B. can make positive profits by producing where MC = MR.
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Refer to Figure 1A.1. The slope of the line between the points where income equals 50 and income equals 200 is
A) 0.2. B) 5. C) 10. D) 50.
Which of the following is NOT an implication of the theory of purchasing power parity?
A) Exchange rates move to equalize the purchasing power of different currencies. B) Exchange rates should be at a level that makes it possible to buy the same amount of goods and services with the equivalent amount of any country's currency in the long run. C) A country with a higher inflation rate should experience an appreciation of its currency. D) The real exchange rate should equal one.
In general but not always, economic growth:
A. causes economic development, but development does not cause growth. B. does not cause economic development, but development causes growth. C. does not cause economic development, and development does not cause growth. D. causes economic development, and development causes growth.
Organizations that survive over time
A) will never change in the future. B) are efficient. C) will be forced to become horizontal. D) are inefficient.