For a monopolist, total revenues will:
A. always decrease as output increases.
B. decrease and eventually increase as output increases.
C. always increase as output increases.
D. increase and eventually decrease as output increases.
Answer: D
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In the figure above, illustrate the effect of an increase in the U.S. interest rate. What is the effect on the foreign exchange rate?
What will be an ideal response?
A payday loan company has decided to open several new locations in the city. To decide where to open these locations it hires consultants and pays them per store opened. At the end of the quarter, the company notices a many of the new stores' sales volume fail to meet expectations. To incentivize the consultants to instead focus on opening profitable stores, the company has decided to alter the
compensation to a percentage of the profit earned per new store. The company should expect to a. Pay the consultants more than they would per store b. Pay the consultants less than they would per store c. Pay the consultants the same d. None of the above
Economists collect data on prices in every country and develop an index that describes the overall difference in prices between countries called the:
A. purchasing power parity index. B. price parity purchasing index. C. consumer price index. D. consumer purchasing power index.
In the short run, with predetermined prices, when output is greater than planned aggregate expenditures:
A. potential output is greater than short-run equilibrium output. B. planned investment is greater than actual investment. C. potential output is less than short-run equilibrium output. D. planned investment is less than actual investment.