Profit can be maximized only where marginal revenue equals
a. average cost.
b. total cost.
c. marginal cost.
d. average cost.
c
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A normal good is one
A) with a downward sloping demand curve. B) for which demand increases when the price of a substitute rises. C) for which demand increases when income increases. D) none of the above
An index of the weighted exchange value of the U.S. dollar versus the currencies of a broad group of major U.S. trading partners is called:
A) trade-weighted dollar. B) exchange-weighted dollar. C) dollarization. D) bilateral dollar.
If the government were to simultaneously cut the personal income tax and the corporate profits tax, the equilibrium interest rate
A) would fall. B) would rise. C) would be unaffected. D) might either rise or fall.
When a country that imported a particular good abandons a free-trade policy and adopts a no-trade policy,
a. consumer surplus increases and total surplus increases in the market for that good. b. consumer surplus increases and total surplus decreases in the market for that good. c. consumer surplus decreases and total surplus increases in the market for that good. d. consumer surplus decreases and total surplus decreases in the market for that good.