To maximize its profit, a monopolistically competitive firm produces the output level at which ____
a. its price elasticity of demand equals one
b. MR = MC
c. ATC is minimized
d. MR = AVC
b
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An indirect tax is exemplified by
A) an income tax. B) a sales tax. C) a subsidy. D) None of the above answers is correct.
If the marginal product of labor is 45 units of output and the marginal product of capital is 56 units of output while the wage rate is $20 per worker and the cost of capital is $28 per machine, are these two inputs being used in the least-cost
combination and what should be done if they are not?
Which of the following is an example of U.S. foreign portfolio investment?
a. Albert, a German citizen, buys stock in a U.S. computer company. b. Larry, a citizen of Ireland, opens a fish and chips restaurant in the United States. c. Nancy, a U.S. citizen, buys bonds issued by a Japanese bank. d. Dustin, a U.S. citizen, opens a country-western tavern in New Zealand.
Which of the following economies are most free?
A) Bolivia and Venezuela B) Bangladesh and Pakistan C) Algeria and the Democratic Republic of the Congo D) Hong Kong and Singapore