The Wax Works sells 400 candles at a price of $10 per candle. The Wax Works' total costs for producing 400 candles are $500. The Wax Works' economic profit is
A. -$100.
B. $3,500.
C. $4,500.
D. indeterminate from this information.
Answer: B
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The exchange-rate arrangement that emerged from the Bretton Woods conference is often called a managed float standard
a. True b. False Indicate whether the statement is true or false
A surplus occurs whenever
A) price is below the equilibrium price. B) price is above the equilibrium price. C) price is equal to the equilibrium price. D) the supply curve is downward sloping.
Other things being equal, a decrease in an economy's exports will
A. decrease domestic aggregate expenditures and the equilibrium level of GDP. B. increase domestic aggregate expenditures and the equilibrium level of GDP. C. increase the amount of imports consumed by the private sector. D. have no effect on domestic GDP because imports will offset the change in exports.
Using the aggregate expenditure model, the equilibrium level of the aggregate expenditure can occur when the economy is producing
A) only at above full employment. B) at full employment, above full employment, or below full employment. C) at either below full employment or at full employment but never at above full employment. D) only at below full employment. E) only at full employment.