Suppose that a tax of $2 per unit of output is imposed on red rubber ball producers. What level of output maximizes profit?
A) -1
B) 3
C) 4.5
D) 5
E) B, C, and D are correct.
D
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A strong Japanese yen:
A) induced Japanese auto manufacturers to increase their production of cars in Japan. B) induced Japanese auto manufacturers to shift their production of cars to the U.S. C) made Japanese exports more price competitive globally. D) had no meaningful impact on Japanese auto manufacturers.
Which of the following represents the best example of a price ceiling?
a. a ration coupon b. the price of caviar c. parity pricing d. rent control e. a soil bank program
An increase in consumption, combined with an increase in exports, would have what effect on aggregate demand?
A. AD would increase B. AD would decrease C. AD would stay the same D. AD could either increase or decrease, depending on which change was of greater magnitude
World output of goods and services increases with specialization because
A. The world's workers are more educated than before specialization. B. Each country's workers are willing to work harder than they did before specialization. C. Each country's production possibilities curve shifts rightward. D. The world's resources are being used more efficiently.