Refer to Scenario 10.3. The marginal cost of red herrings is given as: MC = 0.6Q. What is the profit-maximizing level of output?

Suppose a consumer has the following rule of thumb: Regardless of how gasoline prices fluctuate, she will always buy $20 of gasoline per week and then adjust her driving patterns accordingly. We can then conclude the following:

A. Her own-price elasticity of demand is equal to -1. B. Her income-elasticity of demand is 0. C. Her own-price elasticity is 0. D. Her income elasticity of demand is -1. E. Both (a) and (b). F. Both (a) and (d). G. Both (c) and (d) H. None of the above.

Fixed exchange rate regimes include each of the following, except:

A. the Bretton Woods exchange rate system. B. exchange rate pegs. C. currency boards. D. dollarization.