If a competitive firm is in short-run equilibrium, then
A) profits equal zero.
B) it will not operate at a loss.
C) an increase in its fixed cost will have no effect on profit.
D) an increase in its fixed cost will have no effect on output.
D
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Under a flexible exchange rate system, if the quantity supplied of dollars is greater than the quantity demanded of dollars, there is a:
A) balance of payments deficit and the dollar would depreciate. B) balance of payments surplus and the dollar would depreciate. C) balance of payments deficit and the dollar would appreciate. D) balance of payments surplus and the dollar would appreciate.
Which of the following explains the relatively high growth rate of output in China since 1980?
A) accumulation of capital B) technological progress C) a transition from central planning to a market economy D) all of the above
In the above table, if the marginal factor cost is $480, how many workers would be hired?
A. 6 B. 5 C. 3 D. 4
In a fractional-reserve banking system the reserve/deposit ratio equals:
A. 100 percent. B. more than 100 percent. C. less than 100 percent. D. currency held by the public divided by deposits.