The consumer's optimum choice is represented by
a. MUx/MUy = Px/Py.
b. MUx/Px = MUy/Py.
c. MRSxy = Px/Py.
d. All of the above are correct.
d
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The short-run equilibrium position for a firm in monopolistic competition is the point at which the firm's marginal-cost curve intersects its marginal-revenue curve from above
a. True b. False Indicate whether the statement is true or false
U.S. tire production involves large social costs from air pollution. How will stronger U.S. environmental regulations requiring firms to reduce their air pollutants affect U.S. tire imports?
a. Stronger U.S. environmental regulations will cause increases in U.S. tire imports. b. Stronger U.S. environmental regulations will cause decreases in U.S. tire imports. c. Stronger U.S. environmental regulations will neither cause increases nor decreases in U.S. tire imports d. Stronger U.S. environmental regulations will cause decreases in U.S. tire imports but not reduce tire producers' emissions of air pollutants.
If the CPI rises from 180 to 270, prices have risen by
A. 30%. B. 50%. C. 90%. D. 180%.
The figures below illustrate a situation of a trade embargo. In Figure (a) Dd and Sd are the domestic demand and supply curves of the embargoing countries. Prior to the embargo there was free trade at the world price of P0.
As a result of this embargo, the world as a whole loses Area
A. (a + b + c + d). B. (a + c). C. a. D. (b + c).