Which of the following is a major drawback of the European Monetary Union?
A. Its inability to use monetary policies to address a recession that affects some member countries but not others
B. Its inability to agree to a target for the euro area inflation rate
C. Its inability to raise efficiency in production, thus lowering aggregate output of the member nations
D. Its inability to bring down the transaction costs of trade between member nations
Answer: A
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If a producer can sell each and every unit he can possibly produce for $10 each, then
A) he is a price taker. B) the demand for his product is infinitely elastic. C) his marginal revenue curve is a horizontal line at $10. D) all of the above are true.
A monopoly does not have a supply curve
What will be an ideal response?
The amount of interest owed on a loan of $2,000 after a year at an interest rate of 10 percent is:
A. $2,100. B. $2,200. C. $200. D. $100.
A consumer's budget line will rotate outward along the vertical axis if:
a. the price of the good on the horizontal axis decreases. b. the price of the good on the vertical axis increases. c. the price of the good on the horizontal axis increases. d. the price of the good on the vertical axis decreases.