When the money market is in equilibrium, the bond market is in equilibrium as well
a. True
b. False
A
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The figure above shows the U.S. demand and U.S. supply curves for cherries. At a world price of $2 per pound, the total exports of cherries from the United States to other nations equals
A) 200,000 pounds. B) 400,000 pounds. C) 600,000 pounds. D) 800,000 pounds. E) 0 pounds.
The rate at which a person is willing to give up a gallon of gasoline to get one more pound of coffee and remain on the same indifference curve is called his or her
A) relative cost of coffee in terms of gasoline. B) indifference cost of coffee. C) personal price of coffee. D) marginal rate of substitution.
Assume an electric company has spent $3 billion on a nuclear power plant. It's producing at a price per kilowatt hour that is above its average variable cost. However, after 10 years the price remains below average total cost
If there is no expectation that price will equal or rise above the average total cost what would you expect this company to do with its nuclear power plant? Why is the $3 billion not part of the decision? Explain.
Figure 4.3 illustrates the demand for tacos. If people expect the price of tacos to decrease in the near future, this would most likely bring about a movement from:
A. point a to point b. B. point c to point a. C. D2 to D0. D. D0 to D1.