Cost-of-living adjustments
A. Maintain constant real interest rates.
B. Cause individuals to shorten their time horizons.
C. Reduce the price effect of inflation.
D. Allow individuals to maintain their purchasing power during inflation.
Answer: D
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If the world price is above the domestic "no-trade" equilibrium price, then with international trade, the shortage caused in the domestic market can be met by foreign imports
a. True b. False Indicate whether the statement is true or false
If the slope of a person's utility function for different money prizes is linear, the person
A. is risk averse. B. is indifferent to risk. C. is a risk lover. D. We can't really say
At equilibrium, each of these is true EXCEPT
A. quantity demanded equals quantity supplied. B. the price has no tendency to change. C. market price equals equilibrium price. D. there may be a shortage or a surplus.
In the above figure, if the natural monopoly is not regulated it will produce
A) 12 million units at a price of $18 per unit. B) 8 million units at a price of $12 per unit. C) 8 million units at a price of $21 per unit. D) 8 million units at a price of $24 per unit.