A currency support policy consists of the:
A. selling of a currency to maintain its value above its short-term equilibrium value.
B. buying of a currency to maintain its value above its long-term equilibrium value.
C. selling of a currency to offset fluctuation in supply and demand for the currency.
D. buying of a currency to maintain its value below its long-term equilibrium value.
Answer: B
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For a firm in monopolistic competition, innovation and product development are
A) senseless because economic profit is always zero in the long run. B) necessary in order to have a chance of earning at least a short-run economic profit. C) inconsequential because each firm produces a different product. D) necessary to allow new firms to enter. E) uncommon because other firms already produce similar products.
Optimal decisions are made
A) if information about prices and marginal utilities is known. B) in the marketplace. C) at the margin. D) when marginal utility is minimized.
When a park is funded by visitors but not by taxpayers in general,
a. there will be too few parks because most people will not pay to use a park. b. visitors will be better served because poor service would lead to reductions in revenues. c. park budgets will decline. d. park quality will decline.
When there is a permanent fall in the domestic money supply, the exchange rate:
a. falls in the short run and rises slightly in the long run. b. falls in the short run and falls more in the long run. c. rises in the short run and falls slightly in the long run. d. rises in the short run and rises more in the long run.