The relative price of a smartphone is
A) the money price of the smartphone divided by the money price of some other good.
B) the price of the smartphone compared with what students think it should cost.
C) the amount it cost to make the smartphone.
D) what the company earned for selling the smartphone.
Answer: A
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Which is necessarily true for a perfectly competitive firm in short-run equilibrium?
A. Price minus average total cost equals zero. B. Marginal revenue is zero. C. Marginal revenue minus marginal cost equals zero. D. Total revenue minus total cost equals zero.
Suppose the economy is producing at the natural rate of output. An open market sale of bonds by the Fed will cause ________ in real GDP in the short run and ________ in inflation in the short run, everything else held constant
A) an increase; an increase B) a decrease; a decrease C) no change; an increase D) no change; a decrease
A lump-sum tax per unit on imports is known as
a. a specific tariff b. an effective tariff c. a specific quota d. an effective quota e. an ad valorem quota
The longer the time period considered, the price elasticity of demand tends to: a. decrease
b. remain constant. c. increase. d. converge to zero.