1.A seller who is a price-taker charges ________.

a) The market price

b) different prices to different buyers

c) a price below the market price

d) a price above the market price

2.Which of the following is TRUE regarding marginal revenue?

I.The marginal revenue curve shows the benefit firms receive by producing another unit of a good.

II.Marginal revenue always increases as more of a good is sold.

III.Marginal revenue shows what a person is willing to pay to get another unit of a good.

a) I and III

b) II only

c) I only

d) I and II

3.One dollar could be exchanged for 55 rupees in 2013 and for 60 rupees in 2014. This implies that the ________.

a) rupee appreciated against dollar in 2014

b) nominal exchange rate did not change in 2014

c) real exchange rate did not change in 2014

d) dollar appreciated against rupee in 2014