The purchasing power of money increases when
A. the inflation rate increases.
B. there is deflation.
C. there are more dollars in the economy.
D. there is inflation.
Answer: B
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Sweet Husks is a perfectly competitive corn farm. If the expected price of an ear of corn changes from $0.30 to $0.33, Sweet Husks' expected marginal benefit from holding additional ears of corn in inventory will shift ________ and the profit-maximizing number of ears of corn to hold in inventory will ________.
A) upward; increase B) downward; decrease C) downward; increase D) upward; decrease
Suppose a farmer is a price taker for soybean sales with cost functions given by TC = .1q2 + 2q + 30 MC = .2q + 2 If P = 6 , the profit-maximizing level of output is
a. 10 b. 20 c. 40 d. 80
The one category of goods that are not sold but are, nevertheless, included in GDP is
a. inventories. b. imports. c. consumer services. d. exports.
If a Japanese Toyota sells for 2,500,000 yen and the nominal exchange rate is 110 yen/ $ U.S., then the dollar price of the Japanese automobile is:
A. $22,727. B. $25,000. C. $20,000. D. 22,727 yen.