Refer to the information provided in Figure 9.2 below to answer the question(s) that follow.
Figure 9.2Refer to Figure 9.2. If MR = $9, then a profit-maximizing firm will produce ________ units and earn ________.
A. 15; positive profits
B. 9; positive profits
C. 13; exactly a normal return
D. 12; negative profits
Answer: A
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The policy of keeping tax rates stable as government spending fluctuates is known as ________
A) Ricardian equivalence B) tax smoothing C) crowding-out D) a tax smoothie
According to the above figure for a gasoline market, what happens when the price per gallon of gasoline jumps from $1 to $4?
A) A gasoline surplus is replaced by a gas shortage. B) The market moves from a shortage of 40 million gallons/day to a surplus of 50 million gallons/day. C) The market shortage is replaced by market equilibrium. D) A surplus of 40 million gallons/day results.
If something is to be considered as money, it has to fulfill
A. all three functions B. all four functions
Suppose that the expected return on bonds falls relative to other assets. In the bond market this will result in:
A. a movement down the bond demand curve. B. the bond supply curve shifting left. C. an increase in the price of bonds. D. a shift to the left of the bond demand curve.