When all changes in the world are due to
A) fiscal policy, purchasing power parity holds true in the long run.
B) monetary policy, purchasing power parity does not hold true in the long run.
C) monetary policy, purchasing power parity holds true in the long run.
D) monetary policy, purchasing power parity holds true even in the short run.
E) fiscal and monetary policy, purchasing power parity holds true in the long run.
C
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Assume a profit maximizing firm's short-run cost is TC = 700 + 60Q. If its demand curve is P = 300 - 15Q, what should it do in the short run?
A) shut down B) continue operating in the short run even though it is losing money C) continue operating because it is earning an economic profit D) Cannot be determined from the above information
At which interest rate is the present value of $168.54 two years from today equal to $150 today?
a. 4 percent b. 5 percent c. 6 percent d. None of the above would give a present value within a cent of $162.24.
If the bus fare of a city increases from $1.00 to $1.10 per ride and as a result total revenue increases, then we know that
A) percentage change in fare is less than percentage change in number of rides. B) percentage change in fare is greater than percentage change in number of rides. C) percentage change in fare is equal to the percentage change in number of rides. D) it is impossible to tell.
Refer to the information provided in Figure 8.9 below to answer the question(s) that follow. 
Figure 8.9
Refer to Figure 8.9. If the market price of hay falls to $18, then to maximize profits this farmer should produce
A. 350 bales of hay. B. 500 bales of hay. C. 750 bales of hay. D. a level of output that is indeterminate from this information.