Suppose a risk-neutral competitive firm must produce output before the market price is known. If the uncertain price is given by p = p* + e, where e is a random term with an expected value of zero, a competitive firm should shut down in the short run if:

Suppose the U.S. dollar is backed by one-sixth of an ounce of gold and the British pound is backed by one-third of an ounce of gold. The exchange rate between the U.S. dollar and the British pound equals ________ per pound

A) $0.50 B) $1.00 C) $1.50 D) $2.00

Probably the best measure of a country's economic growth is the growth of

A) real domestic investment. B) real GDP. C) real GDP per person. D) real consumption expenditures.