If the demand curve reflects consumers' full willingness to pay, and the supply curve reflects all costs of production, then which of the following is true?
What will be an ideal response?
The benefit surpluses shared between consumers and producers will be maximized.
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Everything else held constant, a decrease in holdings of excess reserves will mean
A) a decrease in the money supply. B) an increase in the money supply. C) a decrease in checkable deposits. D) an increase in discount loans.
Since World War II, the average length of recessions in the United States has been:
a. 2 months. b. 11 months. c. 2 years. d. 3 1/2 years.
The firm should continue investing
A. only as long as its rental cost is greater than the interest rate. B. up to the point where the MRPK equals its rental cost. C. even if the MRPK is equal to its rental cost. D. only as long as the MRPK is less than its rental cost.
Assume the total product of two workers is 160 and the total product of three workers is 180. The three worker's average product is ________ while the third worker's marginal product is ________.
A. 20; 26.67 B. 320; 540 C. 20; 60 D. 60; 20