Category: Economics

The value of North American exports to Asia is ________. A) more than half the value of Asian exports to North AmericaB) roughly equal to China’s exports to the U.S.C) less than half the value of Asian exports to North AmericaD) is in balance with Asia’s exports to the U.S.

Multiple Choiceare compared to the largest firms in the country.are compared to same size firms in the same geographic region of the country.should be compared to other firms in the same industry.are compared to the norms established by generally accepted accounting principles.

A highway weigh station can inspect an average of 16 trucks per hour. Trucks arrive at the average rate of 10 trucks per hour. Performance is described by an M/M/1 model. What is most nearly the steady-state value of the number of trucks in the station?a.0.60b.0.16c.1.7d.2.5

➤ Why is the isoquant steeper than the isocost for this production function?
The MRTS equals MP_L/MP_K = 0.25, which exceeds the price ratio PL/PK = 0.2. That means one extra unit of labor substitutes for more capital than prices suggest. The technical trade-off favors labor, so the isoquant has a larger absolute slope and leads the firm toward a labor-only corner solution.

A profit-maximiring firm in a monopolistically coemptitive market is characterized by which of the following?
average revenue exceeds marginal revenue
marginal revenue exceeds average revenue
average revenue is equal to marginal revenue
revenue is always maximized along with profit

Question 541.7 ptsWhich pricing policy would probably be best for a profit-oriented producer when introducing a very new product to customers who are not price sensitive?
introductory price dealingmastive coorosition pulseperetration pricingwhmine pollobelow- the-market pricing

How does an excise tax differ from other taxes?
Select the correct answer below:
An excise tax is paid only by corporations.
An excise tax is levied on investment profits rather than wages.
An excise tax is levied on goods.
An excise tax is based on a fixed percentage of income.

4. When can the supply curve fail to slope upward?
The supply curve may not slope upward when quantity is fixed or capacity cannot expand. Examples include unique artworks, land, or short-run perishable supplies where quantity cannot rise with price. Also, in markets with decreasing marginal costs—such as learning-by-doing industries—average cost falls and the long-run industry supply can be flat or downward-sloping.

2 of 3Equilibrium in financial markets occurs at an interest rate where the quantity of loanable funds demanded isless than the quantity of loanable funds supplied.equal to the quantity of loanable funds supplied.unchanging.greater than the quantity of loanable funds supplied.