Which of the following statements is CORRECT for a monopolistically competitive firm in the short run?
A) Its total revenue is maximized.
B) Its total fixed cost is 0.
C) Its marginal cost is equal to its marginal revenue.
D) Its price is equal to its marginal cost.
C
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How might a budget deficit affect the balance of trade?
A) A budget deficit reduces interest rates, which reduces exchange rates and reduces the balance of trade. B) A budget deficit raises interest rates, which raises exchange rates and reduces the balance of trade. C) A budget deficit raises interest rates, which raises exchange rates and increases the balance of trade. D) A budget deficit reduces interest rates, which raises exchange rates and reduces the balance of trade.
All economists agree that the firm's only goal is to maximize profit
Indicate whether the statement is true or false
A country with plenty of capital and little land may have a comparative advantage in:
A. technology-intensive activities. B. land-intensive activities. C. capital-intensive activities. D. labor-intensive activities.
Refer to Figure 35.5. If S1 represents the U.S. domestic supply of a good and S2 represents supply in the United States under conditions of free trade, what does S3 most likely represent?
A. U.S. supply under tariff-restricted trade. B. Production possibilities under conditions of free trade. C. U.S. supply under quota-restricted trade. D. The result of a foreign country dumping this good on the U.S. market.