You are made better off in which of the following situations?
A) you borrow $10,000, you earn income in pesos, the dollar depreciates against the peso, you must pay back the loan in dollars
B) you borrow 10,000 pesos, you earn income in pesos, the dollar depreciates against the peso, you must pay back the loan in pesos
C) you borrow $10,000, you earn income in pesos, the dollar appreciates against the peso, you must pay back the loan in dollars
D) you borrow 10,000 pesos, you earn income in dollars, the dollar depreciates against the peso, you must pay back the loan in pesos
A
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A monopolistically competitive firm that earns economic profits in the short run will face a more elastic demand curve in the long run
Indicate whether the statement is true or false
The law of diminishing marginal product indicates that
A. total product will eventually decrease. B. average product will eventually decrease. C. resources are inefficient. D. marginal product will eventually decrease.
In a marketplace, prices:
A) act as a measure of value, and do not affect the allocation of resources. B) act as incentives that allow for the efficient allocation of resources. C) are determined by politicians and regulators. D) are determined through auctions.
Andrew's utility of wealth schedule is given in the above table. The table indicates that his marginal utility of wealth ________ as his wealth increases
A) diminishes B) is constant C) increases D) increases first and then diminishes