Which of the following could make Chinese-made goods more expensive for American consumers?
A. An increase in the value of the yuan
B. An increase in the inflation rate in the United States
C. A decrease in the size of the U.S. trade deficit
D. An increase in the value of the dollar
Answer: A
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In long-run equilibrium, a perfectly competitive firm's short-run marginal cost curve crosses the long-run average cost curve at the lowest point on the long-run average cost curve
a. True b. False Indicate whether the statement is true or false
Deadweight losses represent the
a. inefficiency that taxes create. b. shift in benefit from producers to consumers. c. part of consumer and producer surplus that is now revenue to the government. d. increase in revenue to the government.
If the equilibrium rate of interest would be 10 percent, but the usury law sets 8 percent,
A. the quantity of funds supplied would be greater than the quantity demanded. B. economic efficiency would be promoted. C. some applicants for loans would likely be turned down. D. lenders would be able to fund fully all requests for loans.
This month Jones bought $10 of fresh hops for making home-brewed lager. In principle, what happens to GDP?
A) Nothing, because it involves the production of homemade beer. B) Nothing, because the hops are an intermediate good. C) GDP increases by $10. D) GDP increases by $10 as long as Jones is satisfied with the final product.