Cashing out capital gains in Virtual Currency System #3 (i.e., turning virtual capital gains into real world currencies) causes the nation's:
a. Monetary base to rise.
b. M2 money supply to rise.
c. M2 money multiplier to rise.
d. Monetary base to remain the same.
.D
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When the firm in the figure above maximizes its profit, it earns an economic profit of
A) $3,125. B) $6,250. C) $9,375. D) $5,625. E) None of the above answers are correct because the firm incurs an economic loss.
If the monopoly illustrated in the figure above could engage in perfect price discrimination, the deadweight loss would be
A) $0. B) $22.50. C) $90.00. D) $250.00.
You are planning to open a new Italian restaurant in your hometown where there are three other Italian restaurants
You plan to distinguish your restaurant from your competitors by offering northern Italian cuisine and using locally grown organic produce. What is likely to happen in the restaurant market in your hometown after you open? A) Your competitors are likely to change their menus to make their products more similar to yours. B) While the demand curves facing your competitors becomes more elastic, your demand curve will be inelastic. C) The demand curve facing each restaurant owner becomes more elastic. D) The demand curve facing each restaurant owner shifts to the right.
Explain what is meant by urban bias. What are the major effects of urban bias?
What will be an ideal response?