Refer to the supply and demand graph of Product X below. If there are positive externalities from the consumption of Product X, then the socially optimal demand curve would be:
A. To the left of line D on the graph
B. To the right of line D on the graph
C. At the position of line D on the graph
D. An upward-sloping line
B. To the right of line D on the graph
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In 1886, the price of a 6.5-ounce glass bottle of Coca Cola was priced at 5 cents. In the case of this size bottle of Coca Cola, the price could be considered
A) as remaining sticky in the short run but flexible in the long run. B) as remaining sticky in both the short run and the long run. C) as being flexible in the short run, but returning to price stickiness in the long run. D) as being flexible in both the short run and the long run.
If the price of an ounce of gold is 200 ZARs in South Africa and $75 in Canada, what will be the South African Rand (ZAR) per Canadian dollar (C$) exchange rate?
a. C$1 = 4.25 ZAR b. C$1 = 1.75 ZAR c. C$1 = 2 ZAR d. C$1 = 2.67 ZAR e. C$1 = 4 ZAR
An oligopoly firm with a differentiated product will generally earn the largest profits without advertising
a. True b. False Indicate whether the statement is true or false
Michelle transfers $4,000 from her savings account to her checking account. What effect is this change likely to have on M1 and M2?
A. M1 decreases and M2 increases B. M1 increases and M2 decreases C. M1 increases and M2 stays the same D. M2 increases and M1 stays the same