Use the following table to answer the question below.Alexandra's Production Possibilities ScheduleNatalia's Production Possibilities ScheduleNumber of Scarfs Knitted per dayNumber of Sweaters Knitted per dayNumber of Scarfs Knitted per hourNumber of Sweaters Knitted per hour040433236242916112080Who should specialize in knitting scarves?
A. Natalia
B. Alexandra
C. Both Natalia and Alexandra
D. Neither Natalia nor Alexandra
Answer: B
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Firms may reasonably decide to cut prices if
A. profits are not likely to decline. B. marginal profit is not negative. C. MR > MC. D. All of the responses are correct.
Both monetary policy and fiscal policy shift the aggregate demand curve.
a. true b. false
In the monetary small open-economy model with a flexible exchange rate, an increase in the foreign price level has which impact on domestic money demand?
A) It increases it. B) It decreases it. C) It has no impact. D) It depends.
Which of the following does not exist when an economy is operating at full employment?
a. An unemployment rate of 5 percent or 6 percent b. Seasonal unemployment c. Structural unemployment d. Cyclical unemployment e. Frictional unemployment