Suppose that 90 percent of the firms selling good X charge the low price. If the remaining 10 percent of firms charge $50 per unit and the expected benefit of an additional search is $10, then the lowest price in the market for good X is:
A. $38.89.
B. $10.
C. $45.
D. $0.
Answer: A
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There are three balance of payments accounts. The sum of the balances on these three accounts will equal
A) the total amount of the nation's foreign borrowing. B) the total amount of the nation's foreign lending. C) zero. D) the total amount of the nation's exports. E) the total amount of the nation's imports.
Which of the following has proved to be spectacularly false, at least recently?
A. As an expansion proceeds, people will hold no more cash. B. As an expansion proceeds, banks will hold no more excess reserves. C. The oversimplified money multiplier formula is predicated on two critical assumptions. D. All of the above are false.
Consider two straight-line PPFs. They have the same vertical intercept, but curve I is flatter than curve II. The opportunity cost of producing the good on the vertical axis
What will be an ideal response?
According to Douglass North, the Industrial Revolution occurred in England because
A) the British Parliament instituted a command economy structure and implemented a planned economy. B) the British courts became tied to the king and began to refuse to enforce property rights. C) the British Parliament took control of the government and could credibly commit to upholding property rights. D) the British monarchy took control of the government and pledged not to raise taxes arbitrarily.