What price should a firm charge for a package of two shirts given a marginal cost of $2 and an inverse demand function P = 6 ? 2Q by the representative consumer?
A. $6
B. $8
C. $10
D. $2
Answer: B
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A price ceiling is non-binding when.
A. it is set above the equilibrium price. B. it is set below the equilibrium price. C. it reduces the output in a market. D. it increases the output in a market.
Behavioral economics is the study of situations in which people make rational choices
Indicate whether the statement is true or false
Last week, 13 Mexican pesos could purchase one U.S. dollar. This week, it takes 11 Mexican pesos to purchase one U.S. dollar. This change in the value of the dollar will ________ exports from the United States to Mexico and ________ U.S
aggregate demand. A) increase; decrease B) increase; increase C) decrease; increase D) decrease; decrease
Which of the following methods of importing technological change is available to a poor country which Gordon describes as being caught in the "poverty trap"?
A) Copy modern products made in rich countries. B) Purchase imported machinery that embodies the latest technology. C) Obtain investment by foreign firms. D) None of the above.