Other things being equal, the quantity of money that people wish to hold can be expected to:
a. None of the answers are correct.
b. increase as the interest rate increases.
c. decrease as real GDP increases.
d. decrease as the interest rate increases.
d
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The case on textbook publishers shows that
A) if imports are allowed, price discrimination is difficult or impossible. B) if imports are allowed, price discrimination is possible. C) publishers have a difficult time identifying the groups involved. D) publishers should not migrate to electronic textbooks.
You've been hired by an unprofitable firm to determine whether it should shut down its operation. The firm currently uses 70 workers to produce 300 units of output per day
The daily wage (per worker) is $100, and the price of the firm's output is $30. The cost of other variable inputs is $500 per day. Although you don't know the firm's fixed cost, you know that it is high enough that the firm's total costs exceed its total revenue. You know that the marginal cost of the last unit is $30. Should the firm continue to operate at a loss? Carefully explain your answer.
M1 money includes all but which one of the following?
a. Savings accounts b. Paper money c. Coins d. Checkable deposits
Use the following graph showing the domestic demand and supply curves for a specific product in a hypothetical nation called Marketopia to answer the next question.
If the world price for this product is $2.00, then Marketopia will
A. import 200 units. B. import 400 units. C. export 200 units. D. export 400 units.