One major reason why the purchasing power parity theory does not always predict exchange rates accurately is that the theory focuses on trade in
a. monies.
b. goods and services.
c. stocks and bonds.
d. physical assets.
b
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If a perfectly competitive firm can sell each unit of output for $9, and the marginal cost of the last unit produced is $8.50, then the:
A. firm should lower its output level in order to increase profits. B. extra benefit of the last unit produced is less than the extra cost. C. firm is earning an average profit of $0.50. D. extra benefit of the last unit produced is greater than the extra cost.
Refer to above Table 2-2. The chain-weighted GDP deflator for year 2 is
A) 1.313. B) 1.211. C) 1.324. D) 1.280.
Second-degree price discrimination allows firms to do all of the following except which one?
A) receive a higher price for the last units sold B) sell more units C) change some of the consumer surplus into profit D) receive a higher price of the first units sold
Social insurance programs are designed to provide financial assistance to people who have fallen into poverty
Indicate whether the statement is true or false