In order to maximize profits, a firm should produce the level of output at which total revenue is maximized
a. True
b. False
Indicate whether the statement is true or false
False
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The Consumer Price Index is a measure of the average of the prices paid by ________ for a fixed basket of consumer goods and services
A) urban consumers B) all consumers C) urban wage earners and clerical workers D) consumers living in cities with a population greater than 100,000
To arbitrage a price difference between two markets, you should:
A) sell in the low-price market and buy in the high-price market. B) buy in the low-price market and sell in the high-price market. C) sell in both markets to capture a lower average "market price." D) none of the above
If people expect the economy to do well in the future, they will increase their consumption today at every price level
a. True b. False Indicate whether the statement is true or false
You are the Minister of Trade for a small island country with the following annual PPC:
You are negotiating a trade agreement with a neighboring island with the following annual PPC: 
Both islands specialize exclusively in the product for which they have a comparative advantage. You have agreed to give 350 coconuts to the other island in exchange for 1,300 fish. After the trade the other island has a total of ________ coconuts and ________ fish.
A. 350; 1,200 B. 500; 1,200 C. 350; 1,500 D. 850; 1,200