The figure above shows a perfectly competitive firm. To maximize its profit, the firm will produce ________ units of output and the price will be ________ for a unit
A) 30; $40
B) 30; $30
C) 20; $40
D) 20; $30
A
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When tax revenues minus outlays is
i. positive, the government has a budget surplus. ii. negative, the government has a budget deficit. iii. zero, the government has a balanced budget. A) iii only B) ii and iii only C) i and ii only D) i only E) i, ii, and iii
When the price of toilet paper falls by 20 percent, the quantity of toilet paper demanded rises by 10 percent. Calculate the price elasticity of demand. Is the demand for toilet paper elastic, inelastic, or unit elastic?
What will be an ideal response?
Erbia can produce either 18 pounds of oranges or 9 pounds of apples an hour, while Glassen can produce either 16 pounds of oranges or 4 pounds of apples an hour. Which of the following terms of trade between apples and oranges would allow both Erbia and Glassen to gain from specialization and exchange?
a. 1 pound of oranges for 0.2 pounds of apples b. 2 pounds of apples for 3 pounds of oranges c. 3 pounds of apples for 3 pounds of oranges d. 1 pound of apple for 3 pounds of oranges
People have a portfolio demand for money in part because:
A. money is needed to pay brokerage commissions. B. there is no cost to holding money which gives it a relatively high return. C. money is part of a well-diversified financial portfolio. D. the return on money is often higher than other financial assets.