A competitive firm's profit will be increasing as long as marginal revenue is greater than marginal cost
a. True
b. False
Indicate whether the statement is true or false
True
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In the Keynesian world a falling real money supply causes GDP to __________ by __________ the real interest rate which causes a(n) __________ in investment
A) increase; increasing; increase B) increase; decreasing; increase C) decrease; increasing; increase D) decrease; increasing; decrease
Suppose that the production function for the economy is: Y = AK1/4L3/4. Assume that A = 1,000, the capital stock is $32,000 billion, and the current labor force is 120 million (or 0.120 billion) workers
All else equal, if the labor force increased by 20 million workers, the value of the marginal product of capital will be A) $0.0104. B) $0.0239. C) $0.0639. D) $0.0717.
GreenTree Corporation sells live Christmas trees. It observes that when it increases the price of Christmas trees by 10 percent, revenue rises by 25 percent. The demand for Christmas trees is:
A. perfectly elastic. B. elastic. C. inelastic. D. unit elastic.
Suppose that in 2020 the average citizen's federal tax bill is $9,372, and total federal spending is $10,824 per person. In 2020, the federal government will have
a. a budget surplus. b. a budget deficit. c. horizontal equity. d. vertical equity.