When expected dollar-euro exchange rates rise, the foreign expected dollar return curve shifts:
a. in.
b. out.
c. not at all.
d. Not enough information is provided to answer the question.
Ans: b. out.
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Use the following graphs for a perfectly competitive market in the short run to answer the next question.
Which of the following statements is true?
A. The firm is earning a normal profit. B. The firm should increase production in the short run. C. The firm is making economic profits. D. The firm is generating a loss.
Refer to the graph below representing the market demand curve for a monopolist’s output. Which of the following prices shown on the graph should the monopolist charge if it wishes to maximize its total revenue?
a. $12
b. $10
c. $8
d. Any of the above because total revenue does not change with a change in price.
There is a tendency for inflation rates to fall in countries that use inflation targeting
a. True b. False Indicate whether the statement is true or false
Higher prices will increase total revenue if
A. Demand is inelastic. B. The price elasticity of demand is zero. C. Demand is unitary elastic. D. Demand is elastic.