Rent seeking refers to unproductive activity in the pursuit of profit
a. True
b. False
Indicate whether the statement is true or false
True
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Within the framework of economics, optimization means providing a good or service until
a. total benefits are maximized. b. total benefits and total costs are equal. c. marginal benefits exceed marginal costs by the greatest amount possible. d. marginal benefits and marginal costs are equal. e. as long as total benefits are greater than total costs, any amount may be optimal under the right circumstances.
A monopolist earns only normal profits in the long run
a. True b. False Indicate whether the statement is true or false
An oligopolist charges a lower price than the short-run profit-maximizing price. How does this affect the firm’s productive efficiency?
a. The firm fails at productive efficiency because P 1 exceeds the minimum ATC.
b. The firm fails at productive efficiency because P 1 is less than the minimum ATC.
c. The firm achieves productive efficiency because P 1 exceeds MC.
d. The firm achieves productive efficiency because P 1 is less than MC.
As part of the nation's recovery from the Great Depression of the 1930s, the banking system was reformed in which of the following ways?
(A) The banking system was taken off the gold standard. (B) The government paid off loans for large corporations. (C) Banks were deregulated by the government. (D) The Federal Reserve Banks were closed.