A firm should keep producing output as long as the marginal profit is greater than zero, no matter how small it is
a. True
b. False
Indicate whether the statement is true or false
True
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In the Great Recession of 2007-2009, the stock market values shrank, causing a reverse ________.
A. interest-rate effect B. wealth effect C. real-balances effect D. expectations effect
A bank has $50,000 in excess reserves and the required reserve ratio is 10 percent. This means the bank could have __________ in checkable deposit liabilities and __________ in (total) reserves
A) $500,000; $90,000 B) $100,000; $20,000 C) $50,000; $25,000 D) $250,000; $75,000
?A perfectly competitive firm sells 200 units at a market price of $40 per unit. Its marginal cost is $50, and it incurs a variable cost of $10,000. To improve its profit or loss situation, this firm should _____.
a. ?continue to produce the present level of output b. ?reduce output but not to zero c. ?shut down d. ?increase output sold to 300 units e. ?raise the price to $45 per unit
What effect have Medicare subsidies had on the consumption of medical services?
A. The consumption of medical services has increased because Medicare subsidies give people the incentive to seek more care than they would otherwise. B. The effect cannot be measured because it is difficult to quantify the amount of resources devoted to our health care system. C. The consumption of medical services has been unaffected, because people don't consider the financial cost when seeking services related to their health. D. The consumption of medical services has been unaffected, because government restrictions have prevented patients from seeking a level of care above and beyond what they would choose if they had to pay for medical treatment out of pocket.