6. A firm in a competitive market has the following cost structure:

If the market price is $4, this firm will

(A) produce 2 units in the short run and exit in the long run.

(B) produce 3 units in the short run and exit in the long run.

(C) produce 4 units in the short run and exit in the long run.

(D) shut down in the short run and exit in the long run.

複選題7. Which of the following is included in the calculation of GDP? (A) The purchase of services from a tutor who holds citizenship outside the country but resides within the country. (B) The purchase of a new edition of a foreign textbook that was produced in a different nation. (C) The purchase of paper supplies by a textbook company for the production of new textbooks. (D) The purchase of a used textbook from a friend who took the same class last year.

8. A consumer chooses an optimal consumption point where the (A) ratio of the prices equals one. (B) marginal rate of substitution exceeds the relative price ratio. (C) slope of the indifference curve equals the slope of the budget constraint. (D) All of the above are correct.

9. Stagflation refers to: (A) a reduction in inflation. (B) a liquidity trap. (C) a simultaneous reduction in inflation and expansion in unemployment. (D) a simultaneous expansion in inflation and expansion in unemployment. 

10. A profit-maximizing monopolist would create a deadweight loss to society valued at  (A) $12. (B) $24. (C) $42. (D) $84.

11. Other things equal, relatively poor countries tend to grow (A) slower than relatively rich countries； this is called the poverty trap. (B) slower than relatively rich countries； this is called the fall-behind effect. (C) faster than relatively rich countries； this is called the catch-up effect. (D) faster than relatively rich countries； this is called the constant-returns-to-scale effect.

12. If the cross-price elasticity of demand for two goods is -4.5, then (A) the two goods are substitutes. (B) the two goods are complements. (C) one of the goods is normal while the other good is inferior. (D) one of the goods is a luxury while the other good is a necessity.

13. Which of the following statements is correct? (A) In the long run, unemployment and inflation are always negatively related. (B) Inflation and unemployment are positively related in the short run and in the long run. (C) In the short run, unemployment and inflation are negatively related. (D) Inflation and unemployment are negatively related in the short run and in the long run.

14. If there is a trade deficit, then (A) saving is greater than domestic investment and Y ＞ C + I + G. (B) saving is greater than domestic investment and Y ＜ C + I + G. (C) saving is less than domestic investment and Y ＞ C +I + G. (D) saving is less than domestic investment and Y ＜ C + I + G. 

15. If the public decides to hold more currency and fewer deposits in banks, bank reserves (A) decrease and the money supply eventually decreases. (B) decrease but the money supply does not change. (C) increase and the money supply eventually increases. (D) increase but the money supply does not change.

16. Two firms are considering going out of business and selling their assets. Each considers what happens if the other goes out of business. The payoff matrix below shows the net gain or loss to each firm. What is the Nash equilibrium? (A) A and B both stay in business. (B) A stays in business, B sells. (C) B stays in business, A sells. (D) Both A and B sell.

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