World Bank funds are largely acquired through interest earned on the deposits of member nations.

World Bank funds are largely acquired through interest earned on the deposits of member nations.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

Under which of the following situations would a seller prefer to incur the cost of improving the product quality?
 a. If the increase in buyer's valuation for the improved product is higher than the cost of improving it.
  b. If the increase in the seller's opportunity cost of improving the product is higher than the price of the product.
  c. If the product improvement lowers the producer surplus.
  d. If the product improvement allows the seller to a break even.

QUESTION 3

Monopolistic and perfect competition are alike in that:
 a. a firm's long-run equilibrium output is located where long-run average total cost is increasing.
  b. a firm's long-run equilibrium output is located where long-run average total cost is minimized.
  c. firms earn a normal rate of return in the long run.
 d. firms are price takers.

QUESTION 4

If the official gold value of the Australian dollar changes from 470 Australian dollars per ounce to 493 Australian dollars per ounce, we can say that the Australian dollar has appreciated in value.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

The difference between opportunity cost of the sellers and the valuation of the buyers is known as:
 a. social cost.
  b. economic value.
  c. deadweight loss.
  d. consumer surplus.

QUESTION 6

In equilibrium under monopolistic competition:
 a. firms always earn profits in the short run.
 b. firms always suffer losses in the short run.
 c. output is at the socially efficient level in the long run.
  d. marginal revenue is less than price.