Which statement is true for a profit maximizing monopolist?
A. It will not produce where marginal cost equals marginal revenue.
B. It can charge whatever price it wants.
C. It can avoid diminishing returns to production.
D. It always faces a downward sloping demand curve.
Answer: D
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The United Auto Workers has fought for curbs on imports of foreign-made cars in order to cause
a. a rightward shift in the supply of U.S. cars b. a leftward shift in the supply of U.S. cars c. movement to the left along the supply curve for U.S. cars d. movement to the right along the supply curve for U.S. cars e. a rightward shift of the demand curve for U.S. cars
The length of time until a bond matures is called the
a. perpetuity. b. term. c. maturity. d. intermediation.
Exchange rates that are allowed to fluctuate in the open market in response to changes in supply and demand are known as
A. fixed exchange rates. B. flexible exchange rates. C. gold exchange rates. D. IMF exchange rates.
If Option A costs $40 and yields 20 units of output and Option B costs $50 and yields 30 units of output,
A) Option B and Option A are equally economically efficient. B) Option B is economically efficient relative to Option A. C) Option A is economically efficient relative to Option B. D) It is not possible to determine which option is more economically efficient.