A perfectly competitive firm sells its output for $100 per unit and marginal cost is $100 per unit. To maximize short-run profit, the firm should:
A. increase output.
B. decrease output.
C. maintain its current output.
D. shut down.
Answer: C
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Exchange rates and banking systems are often the variables through which the contagion effects of a crisis are spread from one country to another
Indicate whether the statement is true or false
Price levels rarely remain the same. This implies that
a. money is an excellent medium of exchange. b. money is divisible. c. money is a good medium for measuring value. d. money is an imperfect medium for storing value.
Which of the following is a positive economic statement?
a. Government control of rent is a fair way to help poor people afford housing. b. Government control of rent keeps landlords from charging too much rent. c. Government control of rent decreases the number of new apartments constructed. d. Government control of rent is an injustice.
Annabelle lives in a wealthy country, while Stacy lives in a poor country. Which statement about their situations is most likely true?
a. Stacy has many siblings, while Annabelle has few or none. b. Stacy’s opportunity costs for raising children are high. c. Annabelle has many siblings, while Stacy has few or none. d. Annabelle’s opportunity costs for raising children are low.