
the Figure 3.4 illustrates the demand for tacos. An increase in price of tacos would bring about a movement from:
A. point a to point c.
B. point c to point a.
C. D2 to D0.
D. D0 to D1.
Answer: B
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A firm’s production process shows constant returns to scale. It can produce 5,000 widgets at a total cost of $2,500 and 10,000 widgets at an average cost of
A. $10,000. B. $5,000. C. $2,000. D. $0.50.
Any action that gives rise to a supply of foreign currency is a
A) deficit item on the current account and a surplus item on the financial and capital accounts. B) surplus item on the current account and a deficit item on the financial and capital accounts. C) surplus item on the current, financial, or capital account. D) deficit item on the current, financial, or capital account.
New computer technology has
A) increased the cost of financial innovation. B) increased the demand for financial innovation. C) reduced the cost of financial innovation. D) reduced the demand for financial innovation.
Microeconomics and macroeconomics use different types of analysis
a. True b. False Indicate whether the statement is true or false