Potential GDP is an estimate of the economy’s ability to produce goods and services if the
A. labor force is fully employed.
B. price level is stable.
C. trade balance is zero.
D. federal budget is balanced.
Answer: A
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Is this outcome efficient?
a. Yes because both of them are maximizing their payoffs b. No, because both of them can do better than their current equilibrium c. No, because cheating is goodNo, because cheating is good d. All of the above
When the marginal product of an input is ______ than the average product, the marginal units of the input _____ the average product.
A. larger; lower B. smaller; raise C. smaller; do not affect D. larger; raise
When a firm experiences economies of scale, long-run average total cost falls as the quantity of output increases
a. True b. False Indicate whether the statement is true or false
Money is:
A. the clearest example of something that is fungible. B. more fungible in cash form versus as checking account balances. C. always recognized as fungible by individuals. D. All of these are true.