A worker's marginal revenue product depends upon his average product
a. True
b. False
Indicate whether the statement is true or false
False
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If a firm has implicit costs as well as explicit costs
A) accounting profit will be zero. B) net income will always be greater than accounting profit. C) net income will always be less than accounting profit. D) economic profit will be less than accounting profit.
Like profit-seeking, rent seeking is also a productive activity and contributes to the growth of the economy
a. True b. False Indicate whether the statement is true or false
A surplus of a product will arise when price is:
A. below equilibrium, with the result that quantity supplied exceeds quantity demanded. B. above equilibrium, with the result that quantity demanded exceeds quantity supplied. C. below equilibrium, with the result that quantity demanded exceeds quantity supplied. D. above equilibrium, with the result that quantity supplied exceeds quantity demanded.
A country with a fixed exchange rate experiences upward pressure on the exchange rate value of its currency. The central bank chooses to intervene in the market to maintain its fixed exchange rate. How would the central bank go about intervening? If the upward pressure on the currency persists, would it be difficult to maintain the fixed exchange rate? Why or why not? Would your answers differ if the country carried out sterilized intervention? Why or why not? Give an example of a country that attempted to maintain its exchange rate in the face of upward pressure on its currency value. What was the result?
What will be an ideal response?