If a country has an overvaluation problem, the best solution is to
A) increase the official rate.
B) buy less of its currency in the foreign exchange market.
C) sell more of its currency in the foreign exchange market.
D) decrease the money supply.
D
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T-Shirt Enterprises is operating in a perfectly competitive market. It is producing 3,000 t-shirts and selling them for $10 each. At this level of output, the average total cost is $10.50 and the average variable cost is $10.20. Based on these data, the firm should
A. decrease production to 2,500 t-shirts. B. shut down in the short run. C. continue to produce 3,000 t-shirts. D. increase production to 3,500 t-shirts.
An increase in nominal GDP could result from an increase in
i. production. ii. prices. iii. subsidies. A) ii only B) i and ii C) i, ii, and iii D) i only E) i and iii
Is a firm technologically efficient if it uses the latest technology? Why or why not?
What will be an ideal response?
Which of the Ten Principles of Economics do governments run into when they redistribute income to achieve greater equality?
a. Trade can make everyone better off. b. The cost of something is what you give up to get it. c. People face trade-offs. d. Markets are usually a good way to organize economic activity.