Stefano has just completed an original oil painting. After considering the costs for brushes, paint, canvas, and the value of Stefano's labor time, the marginal cost of the painting is $1,000. Lucky Stefano. One art lover paid him $1,500
How much producer surplus did Stefano obtain? A) The amount of producer surplus cannot be determined from the information given.
B) $1,500
C) $1,000
D) $500
D
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Do deficits lead to inflation?
What will be an ideal response?
If the current exchange rate is higher than the Fed's target exchange rate, the Fed would
A) implement purchasing power parity. B) implement interest rate parity. C) buy dollars. D) sell dollars.
The long-run supply curve for a perfectly competitive, constant-cost industry
A) is found by adding up the marginal cost curves for all firms in the industry. B) is horizontal. C) is upward-sloping. D) is downward-sloping.
Which of the following statements is (are) correct? The Federal Reserve
a. can, over the long run, roughly control the money supply by changing the monetary base to offset any undesirable changes in the money stock as a result of changes in currency holdings or excess reserve holdings. b. controls the money supply better in the long-run because of short-run uncertainty regarding the money multiplier. c. is in absolute control of the money stock at all times. d. Both a and b