Choose the letter of the diagram in Figure 36.2 that represents the shift in the foreign exchange market for dollars given the following situation, ceteris paribus: The president of the United States decides to support the dollar by purchasing dollars with U.S. holdings of foreign currencies.
A. a.
B. b.
C. c.
D. d.
Answer: D
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When its marginal cost increases, a firm aiming at maximizing net revenue
A) can always raise its price, but only by the amount of the cost increase. B) can often raise its price by more than the cost increase. C) can raise its price, but always by less than the cost increase. D) may not be able to raise its price at all.
About 1 out of every _______ Americans is poor.
A. 3 B. 4 C. 6 D. 8
Which of the following ideas is the most plausible?
a. Reducing a high tax rate is less likely to increase tax revenue than is reducing a low tax rate. b. Reducing a high tax rate is more likely to increase tax revenue than is reducing a low tax rate. c. Reducing a high tax rate will have the same effect on tax revenue as reducing a low tax rate. d. Reducing a tax rate can never increase tax revenue.
The marginal revenue curve for a monopolistically competitive firm, when compared to the marginal revenue curve for a perfectly competitive firm, is
A. identical in that they are both vertical. B. steeper. C. identical in that they are both horizontal. D. flatter.