In Figure 17.6, long-run economic growth implies a
A. Shift from AD1 to AD2.
B. Move from point D to point C.
C. Move from point A to point B.
D. Shift from LRAS1 to LRAS2.
Answer: D
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A perfectly competitive firm has a random demand with a 20 percent chance of being $10, a 20 percent chance of $16, and a 60 percent chance of being $20. What is the firm's expected marginal revenue?
A) $16.00 B) $16.40 C) $17.20 D) $15.20
Suppose a state discovered chemical compounds in their water. The source of these chemicals is the waste discharges of industrial plants in another state. This is an example of a(n):
a. market failure where the market price of the output of these industrial plants does not fully reflect the social cost of producing these goods. b. external cost imposed by the industrial plants of another state. c. externality where the marginal social costs of producing these industrial goods differ from the marginal private costs. d. all of these.
The demand for U.S. dollars originates from all of the following except
A. Foreign demand for U.S. investments. B. U.S. demand for imported goods. C. Speculation in U.S. dollars. D. Foreign demand for U.S. exports.
Give a hypothetical example of a nation experiencing hyperinflation. Avoid giving examples provided by the text.
What will be an ideal response?