If the firm has many competitors, the marginal revenue curve is
A. upward sloping.
B. vertical.
C. flat (horizontal).
D. downward sloping.
Answer: C
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One of the drawbacks of cost-benefit analysis is that it _____
a. attempts to add up both the costs and the benefits b. is not compatible with utilitarianism c. cannot adjust for spending at different points in time d. focuses on total costs and benefits
Some low-income countries generally remain poor because
a. their institutional arrangements and policies often discourage productive activity and reduce the potential gains from specialization and exchange. b. they are oppressed by developed nations that benefit from the cheap goods available from countries with low wage rates. c. they are poorly endowed with natural resources, which are essential for long-term growth. d. when the average income level is low, workers have little incentive to earn higher incomes.
Albania wants to maintain its exchange rate of $0.20 per lek. However, the market for lek per U.S. dollar has determined an exchange rate of $0.14 per lek (depreciation of the lek against the U.S. dollar). The Albanian central bank decides to increase the domestic interest rates through a contractionary monetary policy. This would shift the:
A. supply of lek to the right and cause the lek to lose value. B. demand of lek to the left and cause the lek to lose value. C. demand of lek to the right and cause the lek to gain value. D. supply of lek to the left and cause the lek to lose value.
A price floor above the equilibrium price increases the total surplus of the market.
Answer the following statement true (T) or false (F)