"The distribution of income should be determined by the government" is an example of a normative economic statement
Indicate whether the statement is true or false
TRUE
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If the price level in the U.S. is 120, the price level in South Africa is 140, and the nominal exchange rate is 7 South African rands per dollar, then the real exchange rate is
A) 6 South African goods per U.S. good. B) 8.4 South African goods per U.S. good. C) 9.8 South African goods per U.S. good. D) 1.4 South African goods per U.S. good.
A factory produces 1,000 radios a year, AVC = $10 and TFC = $5,000. The factory’s TC
A. equals $15. B. equals $5,005. C. equals $15,000. D. cannot be determined from the information given.
Suppose that at the current level of output, Pat's Hats has fixed costs of $500, variable costs of $1,000 . and $2,000 in total revenue. Which of the following is true?
a. Profit is currently $500 and, in the long run, it will be $1,000 because there will be no fixed costs. b. Profit is currently $500 and, in the long run, it will be $1,500 because there will be no variable costs. c. Profit is currently $500. d. Profit is currently $500, and Pat's Hats will want to decrease its plant size in the long run to lower its fixed costs. e. Pat's Hats will continue to operate as long as revenue is greater than $500.
Firms in monopolistic competition and oligopoly depend on some degree of brand loyalty. Which goods are able to command the most brand loyalty?
a. facial tissues b. cola drinks c. shampoo d. cigarettes e. toothpaste