In Figure 23.3, diagram "a" presents the cost curves that are relevant to a firm's production decision, and diagram "b" shows the market demand and supply curves for the market. Use both diagrams to answer the following question: In Figure 23.3, the price at which a firm makes zero economic profits is
A. p1.
B. p2.
C. p3.
D. p4.
Answer: C
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If the Fed sets a target exchange rate that is higher than the current exchange rate, then
A) the Fed must sell dollars. B) the Fed must buy dollars. C) the Fed can do nothing in the short run. D) will try to print more dollars for foreign distribution.
Limited liability is a benefit available only to
A) sole proprietorships. B) partnerships. C) corporations. D) All of the above.
The Keynesian economic framework is based on the assumption that: a. prices and wages are sticky and do not adjust quickly
b. prices and wages self-adjust in the long run. c. agriculture is the source of economic wealth. d. markets work better without any government intervention.
Which of the following would contribute to a United States current account surplus?
A. The United States makes a unilateral tariff reduction on imported goods. B. General Motors pays a dividend to a Swiss stockholder. C. The United States cuts back on American military personnel stationed in Germany. D. Russian vodka becomes increasingly popular in the United States.