The decision by a nation to join a currency union is based on:
A) the size of the nation's GDP.
B) the diversification of its industry and population.
C) the cost of designing, printing, and managing a national currency.
D) the costs of abandoning a national currency versus the benefits of a common currency.
Ans: D) the costs of abandoning a national currency versus the benefits of a common currency.
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Refer to the table below. If Sweet Grams is a perfectly competitive firm and the market price $1.00 per unit, what is the profit-maximizing total quantity for Sweet Grams to produce?
Sweet Grams makes graham cracker snack packages. Sweet Grams is a multi-plant firm with two production facilities. The above table summarizes the total marginal cost of production at various output levels in the separate plants. Assume Sweet Grams is a perfectly competitive firm.
A) 47,000
B) 22,500
C) 24,500
D) 52,000
In the graph shown above, if the government set a price ceiling of $18
A. the price would rise to the equilibrium price.
B. the price would fall to equilibrium price.
C. there would be a temporary shortage, then price would rise to equilibrium price.
D. there would be a permanent shortage, at least until the price ceiling was lifted.
Refer to the above figure. Suppose demand is D2 and then increases to D3. Economic rent after the change is
A. zero. B. area CIGO. C. area BJC. D. area CIHF.
The marginal rate of transformation is the
A. slope of the production possibility frontier. B. transformation of resources into a form that is useful to people. C. process of using resources to produce new capital. D. dollar value of the best forgone alternative.