Suppose that 100 firms operate in a perfectly competitive industry and each firm has the same technology and cost structure. If each firm maximizes profits by selling 20 units of output at $5.00, then the quantity supplied in the market at $5.00 is:
A. 2,000.
B. less than 2,000.
C. greater than 2,000.
D. zero.
Answer: A
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A nation's account with the International Monetary Fund is measured in an international unit known as
A) international reserves. B) special drawing rights. C) monetary deposits. D) monetary rights.
The U.S. tax system as a whole is basically
A. Proportional. B. Progressive. C. Regressive. D. Variable in its impact because it changes from one year to the next.
The purchasing power parity theory states that
A) exchange rates between any two currencies will adjust to reflect changes in the relative price level of the two countries. B) exchange rates between any two currencies will adjust to reflect change in the relative income growth rates of the two countries. C) the larger the economic growth rate in a country, the less likely its currency will depreciate in value. D) exchange rates cannot be compared over time. E) currencies appreciate as often as they depreciate.
A shift in supply is defined as a change in
A. Equilibrium quantity. B. Price. C. Quantity supplied because of a change in price. D. The supply curve because of a change in a determinant of supply.