Suppose that one-year Treasury bills yield 5 percent in the United States and 6 percent in France. Investors will prefer the U.S. securities if they expect the dollar to __________ against the euro over the next year
A) depreciate by less than 1 percent
B) depreciate by more than 1 percent
C) appreciate by less than 1 percent
D) appreciate by more than 1 percent
D
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Consider a monopolist who has a total cost curve of: TC = 7X + (1/2)X2. The market demand equation is X d = 386 - (1/2)P.
A) What are the equilibrium quantity, equilibrium price, and profits in this market? B) Suppose that a unit tax of $1 is placed on the monopolist. What happens to the equilibrium quantity, equilibrium price, and profits? How much tax revenue does the government generate? C) Suppose that the same unit tax of $1 is placed on consumers. What happens to the equilibrium quantity, equilibrium price, and profits? How much tax revenue does the government generate? D) What can be said about the taxes?
In the long run in a perfectly competitive industry
A) opportunity costs are negligible. B) economic profits will be zero. C) some firms will be experiencing economic losses. D) only entrepreneurs will earn more than their opportunity costs.
Which of the following is true of perfectly competitive firms? a. It is difficult for entrepreneurs to become suppliers of a product in a perfectly competitive market structure. b. A perfectly competitive firm has a perfectly elastic supply curve
c. In a perfectly competitive market, an individual seller can change his price and it will not alter the output he sells. d. None of the above are true.
A technological advance that increases labor productivity will:
a. decrease the supply of labor as fewer workers are needed. b. increase the demand for labor as MP rises. c. decrease the demand for labor as fewer workers are needed. d. lower wages.