If a firm in a perfectly competitive market raises its price
A) it will sell more products.
B) it will sell fewer products.
C) its sales will remain unchanged.
D) it will sell nothing.
Answer: D
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A distinction between stocks and bonds is that
A) although the return on a bond is determined by the forces of supply and demand, the return on a stock is set by the stock exchange. B) stocks represent ownership claims to the company and bonds do not. C) bonds must be held for a fixed number of years whereas stocks can be bought and sold at any time. D) bonds can be traded many times in the bond market, while stocks are non-transferable. E) bonds cannot be sold to anyone other than the company that issued it while stocks can be resold to anyone.
Economic growth is measured as:
a. the quarterly percentage change in nominal GDP. b. total output per year divided by the inflation rate. c. total nominal GDP at the end of each year. d. the percentage change in population growth per year. e. the annual percentage change in real GDP.
In an economist’s view, a cartel usually offers to society
A. all the cost benefits of large-scale production and none of the allocative inefficiencies of monopoly. B. all the cost benefits of large-scale production and all of the allocative inefficiencies of monopoly. C. none of the cost benefits of large-scale production and none of the allocative inefficiencies of monopoly. D. none of the cost benefits of large-scale production and all of the allocative inefficiencies of monopoly.
Suppose that Cambodia becomes the next popular tourist destination. You notice that hotels, restaurants, and other services cost much less there than in the United States. From the perspective of the U.S. dollar, what would be the real exchange rate of the Cambodian riel?
a) The real exchange rate would be 0. b) The real exchange rate would be 1. c) The real exchange rate would be greater than 1. d) The real exchange rate would be less than 1.