The minimum-cost output is the quantity corresponding to the minimum point of the:
a. marginal cost curve.
b. marginal product curve.
c. average variable cost curve.
d. average total cost curve.
Answer: d. average total cost curve.
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A circular flow model shows the interrelationship between the ________ markets and the ________ markets
A) expenditure; income B) household; goods C) business; household D) goods; factor E) household; factor
Which of the following cannot be controlled precisely by the Federal Reserve?
A) Government securities held by the New York Federal Reserve B) The discount rate C) Reserve requirement ratios D) Total bank reserves
The three ways government can encourage research and development are ________
A) patents, foreign aid and direct government spending B) foreign aid, direct government spending and tax incentives C) direct government spending, tax incentives and patents D) tax incentives, patents and foreign aid
One way in which monopolistic competition differs from oligopoly is that
a. there are no barriers to entry in oligopolies. b. in oligopoly markets there are only a few sellers. c. all firms in an oligopoly eventually earn zero economic profits. d. strategic interactions between firms are rare in oligopolies.