Under a gold standard, a balance of payments deficit automatically
A. raised interest rates.
B. decreased exports.
C. increased domestic prices.
D. increased imports.
Answer: A
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How does the new growth theory explain economic growth?
What will be an ideal response?
In the short run, a perfectly competitive firm will shut down if at the profit maximizing quantity the
A) P < AVC. B) AVC < ATC. C) P > ATC. D) P > MC.
If Joey Kobayashi experiences diminishing marginal utility from eating hot dogs then
A) the marginal utility from the next hot dog Joey eats will be negative. B) Joey is maximizing the marginal utility per dollar he receives from eating hot dogs. C) the additional satisfaction he receives from eating another hot dog will be less then the satisfaction he received from his eating his last hot dog. D) his total utility from eating hot dogs is negative.
The consumer's optimum choice is represented by
a. MUx/MUy = Px/Py. b. MUx/Px = MUy/Py. c. MRSxy = Px/Py. d. All of the above are correct.