Which statement is true?
A. Money may perform as a standard of value or as a store of value, but not both at the same time.
B. The main job of money is a medium of exchange.
C. Money may perform as a standard of value or as a standard of deferred payment, but not both at the same time.
D. Money performs extremely well as a standard of deferred payment in the long run.
B. The main job of money is a medium of exchange.
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Once a firm has determined the quantity of output it wishes to sell, the maximum price it can charge for each unit is determined by:
A. the demand curve facing the firm. B. the marginal cost of making the product. C. the firm's marginal revenue curve. D. the average cost of making the product.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
Melanie and Oli are competing Pacific halibut fishers. Both have been allocated ITQs that limit their catch to 1,000 tons of Pacific halibut each. Melanie's cost per ton is $20; Oli's cost per ton is $28. Refer to the information given and assume
that the market price of Pacific halibut is $40 per ton. If Melanie pays Oli $10 per ton for his ITQs and then catches her new limit of 2,000 tons, their combined profit would be: A. $28,000. B. $32,000. C. $30,000. D. $54,000.
If the government uses expansionary monetary or fiscal policies to counter the output-effects of cost-push inflation, then the economy is likely to experience:
A. A decline in nominal wages B. An inflationary spiral C. A recession D. Disinflation