Is a monopolistically competitive firm allocatively efficient?
A) No, because it does not produce at minimum average total cost.
B) Yes, because price equals average total cost.
C) No, because price is greater than marginal cost.
D) Yes, because it produces where marginal cost equals marginal revenue.
C
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The table above gives the CPI market basket for 2010 and 2011. Suppose that 2010 is the reference base period
a. What is the cost of the CPI market basket in 2010? b. What is the cost of the CPI market basket in 2011? c. What is the CPI for 2010? d. What is the CPI for 2011?
New Keynesian economists generally argue that
A) there is an exploitable tradeoff between unemployment and inflation. B) changes in aggregate demand will have relatively greater effects on real GDP when firms change prices less frequently. C) activist policy can be used to reduce the fluctuations in real GDP. D) all of the above
Countries that enjoy long distance flows of goods, capital, and services as well as information and perceptions that accompany market exchanges would be categorized under _____ globalization
a. ethical b. cultural c. social d. economic e. political
Which of the following statements best describes the impact of a higher interest rate?
a. A higher interest rate will attract an inflow of foreign financial capital and depreciate the exchange rate in response to the increase in demand for U.S. dollars by foreign investors and a decrease in supply of U.S. dollars. b. A higher interest rate will attract an inflow of foreign financial capital and appreciate the exchange rate in response to the increase in demand for U.S. dollars by foreign investors and an increase in supply of U.S. dollars. c. A higher interest rate will attract an inflow of foreign financial capital and appreciate the exchange rate in response to the increase in demand for U.S. dollars by foreign investors and a decrease in supply of U.S. dollars. d. A higher interest rate will attract an inflow of foreign financial capital and depreciate the exchange rate in response to the increase in demand for U.S. dollars by foreign investors and a increase in supply of U.S. dollars.