A firm now produces its sales-maximizing level of output. If the firm increased its output by one unit, its marginal revenue would become
a. negative.
b. smaller but still positive.
c. larger but still negative.
d. larger but still positive.
a
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Assuming all excess reserves are loaned out, if the reserve ratio is 8 percent, the money multiplier will be equal to
A) 2. B) 8. C) 12.5. D) 16.67.
High interest rates might cause a corporation to ________ building a new plant that would provide more jobs
A) complete B) consider C) postpone D) contemplate
If farm price supports gave farmers 80 percent parity in 1950 and 60 percent parity in 1975, then we know that
a. the ratio of farm income to nonfarm income was higher in 1975 than in 1950 b. the ratio of farm income to nonfarm income was higher in 1950 than in 1975 c. the ratio of farm prices to nonfarm prices was higher in 1975 than in 1950 d. the ratio of farm prices to nonfarm prices was higher in 1950 than in 1975 e. farmers were better off in 1975 than in 1950