When you discover money in your coat that you placed there last winter, you unexpectedly find you were using money as a(n)
A) medium of exchange.
B) unit of account.
C) factor of production.
D) store of value.
Ans: D) store of value.
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The output level is constant along any isoprofit line.
Answer the following statement true (T) or false (F)
According to the quantity theory of money, if the velocity of money is stable or at least predictable, then the equation of exchange can be used to predict the effects of changes in the money supply on nominal GDP
Indicate whether the statement is true or false
Advocates of steel tariffs to protect American steel firms realize that when imposing such tariffs the gains of firms are outweighed by the losses to consumers. This implies that
A) such advocates value producer surplus more than consumer surplus. B) such advocates want to help consumers. C) such advocates value consumer surplus more than producer surplus. D) such advocates value producer surplus and consumer surplus equally.
Suppose an entrepreneur commits to a production schedule but underestimates the market price for his products. What will be true about his current level of production?
a. Losses will be very high. b. Marginal cost will be less than marginal revenue. c. Marginal cost will be more than marginal revenue. d. Average total cost will exceed price. e. Total fixed costs will be too low.