18. According to the Mundell-Fleming model for a small open economy with flexible exchange rates, an
19. Which of the following would cause stagflation?(A) rising government expenditures. (B) technical
20. Mrs. Smith is operating a firm in a competitive market. The market price is $6.50. At herprofit-
1. Which of the following conditions is characteristic of a monopolistically competitive firm in sho
2. When economists talk about growth in the economy, they measure that growth as the(A) absolute cha
3. Suppose that a college professor is creating an exam in her university office. Which of the follo
4. Other things the same, when the price level rises, interest rates(A) rise, so firms increase inve
5. Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been s
6. Suppose Susan can wash 3 windows per hour or she can iron 6 shirts per hour. Paul can wash 1 wind
7. The opportunity cost of going to college is(A) the earnings given up to attend college.(B)the tot
8. A consumer chooses an optimal consumption point where the(A) marginal rate of substitution equals
9. Suppose when a monopolist produces 75 units its average revenue is $10 per unit, its marginal rev
10. In the long run the local coffee shop incurs total costs of $625 when output is 1,250 cups of co
1. (1) The price charged for goods produced is $15. The intersection of the marginalrevenue and marg
(2) Assume that a monopolist decides to maximize revenue rather than profit. Thisoperating objective
2. Assume that the following equations characterize a large open economy: Y=C+I+G+NX； CF = -100r； CF
1. Beef is a normal good. You observe that both the equilibrium price and quantity of beefhave falle
1. A country has a comparative advantage in a product if(A) the world price is lower than its domest
3. When a tax is levied on sellers of tea, buyers of a good bear the larger share of the tax burdenw
4. The substitution eflect of an increase in the interest rate will result in an increase in(A) cons
5. Assume that goods X and Y are not Giffen goods. If the price of good X falls, a consumer willdefi
6. Thirsty Thelma owns and operates a small lemonade stand, When Thelma is producing a smallquantity