Which of the following is most likely to increase U.S. exports?
a. The government gives subsidies to U.S. firms that export goods or services.
b. The government reduces the size of the budget surplus.
c. The United States unilaterally reduces its restrictions on foreign imports.
d. Taxes on domestic saving rise.
c
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The key difference between monopolistic competition and perfect competition is that in monopolistic competition the tangency of
a. AC and the demand curve occurs along the negatively sloped part of AC. b. the demand curve and AC occurs at the minimum point of the AC curve. c. AC and the demand curve occurs along the positively sloped part of AC. d. MC and MR at the optimum output.
If technology improves when a nation is in the intermediate range and only the Aggregate Supply changes, then:
a. Real GDP rises and real GDP remains the same. b. Real GDP remains the same and average price level falls. c. Real GDP remains the same and average price level rises. d. Real GDP rises and average price level falls. e. Real GDP falls and average price level rises.
For a monopolistically competitive firm in long-run equilibrium:
A. price will equal marginal cost. B. price will equal average total cost. C. marginal revenue will exceed marginal cost. D. economic profits will be some positive amount.
(Advanced analysis) The equation C = 35 + .75Y, where C is consumption and Y is disposable income, shows that:
A. households will consume three-fourths of whatever level of disposable income they receive. B. households will consume $35 if their disposable income is zero and will consume three- fourths of any increase in disposable income they receive. C. there is an inverse relationship between disposable income and consumption. D. households will save $35 if their disposable income is zero and will consume three-fourths of any increase in disposable income they receive.