The demand curve for a product can be derived from consumer equilibrium by:
a. altering the prices of all other products.
b. altering consumer incomes.
c. shifting consumer preferences.
d. altering the price of the good itself.
e. knowing the demand curves for all other products.
d
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The current account balance is equal to
A) exports - imports - net interest + net transfers. B) exports - imports + net interest + net transfers. C) imports - exports + net interest - net transfers. D) exports - imports - net interest - net transfers. E) imports - exports + net interest + net transfers.
Price ceilings can result in a net loss in consumer surplus when the ________ curve is ________
A) demand; very elastic B) demand; very inelastic C) supply; very inelastic D) none of the above; price ceilings always increase consumer surplus
When a firm's average cost curve lies below its average revenue curve at the profit-maximizing level of output, it implies that the firm is suffering losses
a. True b. False Indicate whether the statement is true or false
One criticism of monetary policy based on a predetermined steady growth rate in money supply is that
A) wages and prices are sufficiently flexible to allow the economy to restore the natural level of Real GDP on its own. B) the total lag in monetary policy may be too long to allow for effective monetary policy. C) changes in velocity, if not accounted for, can then be a source of price instability. D) a and b E) all of the above