In the 1965 to 1973 period, U.S. policymakers ________
A) targeted an unemployment rate that, in hindsight, was likely too low
B) pursued an easing of monetary policy designed to increase aggregate demand
C) made some mistakes that led to the most sustained inflationary episode in U.S. history
D) all of the above
E) none of the above
D
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Which of the following does not hold true for a perfectly competitive firm in long-run equilibrium?
A) Marginal cost will be minimized. B) It will minimize average total cost. C) Its economic profit will be zero. D) It will charge a price equal to marginal cost.
If the demand for donuts is elastic, then a decrease in the price of donuts will
a. increase total revenue of donut sellers. b. decrease total revenue of donut sellers. c. not change total revenue of donut sellers. d. There is not enough information to answer this question.
Firms 1 and 2 compete in a Cournot duopoly. If firm 2 adopts a strategy that raises firm 1's marginal cost:
A. firm 2 will lose market share. B. firm 1 will enjoy higher profits. C. firm 1 will increase its output. D. None of the statements is correct.
According to the possible trade-off example between warships and drinking water in the text, the policy question that should be considered in Malaysia is:
A. Do the opportunity costs of the warships exceed their nominal costs? B. Do the nominal costs of the warships exceed their real costs? C. Do the benefits of the warships exceed their opportunity costs? D. Do the real costs of the warships exceed their nominal costs?