If Alicia limits the range of her productive activities rather than trying to be self-sufficient, she is engaging in
a. specialization
b. exchange
c. absolute advantage
d. increasing opportunity costs
e. reducing her standard of living
A
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Using the data in the above table, when the firm increases its output from 4 to 9 units, the marginal cost of a unit is
A) $4.00 a unit. B) $5.00 a unit. C) $6.00 a unit. D) $7.00 a unit.
Which of the following is associated with inelastic demand?
a. a limited amount of time for consumers to respond to a price change b. availability of many close substitutes c. large percentage of income spent on the good in question d. all of the above
If the long-run equilibrium of an economy is disrupted by an unexpected shift to a more expansionary monetary policy, the policy shift will
a. reduce aggregate demand and real output in the short run. b. lead to a higher rate of unemployment in the short run. c. stimulate real output in the short run, but in the long run, its primary impact will be on the general level of prices. d. lead to an increase in the general level of prices in the short run, but in the long run, its primary impact will be an expansion in real output.
At which interest rate is the present value of $196.85 three years from today equal to $175 today?
a. 2 percent b. 4 percent c. 6 percent d. 8 percent