The difference between a firms' profit-maximizing quantity and the quantity that minimizes average cost is called excess capacity
Indicate whether the statement is true or false
true
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When examining the financial status of households, wealth is
A) synonymous with income. B) a flow variable whereas income is a stock variable. C) a stock variable and includes both tangible assets and human capital. D) not as important as income because wealth does not change over time.
Which of the following is true of the federal budget? a. The federal budget is a plan that describes a government's monetary policy for the current financial year
b. The federal budget is a plan that describes a government's fiscal policy for the current financial year. c. The federal budget is a plan that describes the president's take on the economy. d. The federal budget is a plan for federal government outlays and revenues for a specified period, usually a year. e. The federal budget is a plan that describes the eligibility criteria of the major entitlement programs taken up by Congress for the current financial year.
The case for income inequality is supported by which of the following arguments?
a. personal misfortune is a random event b. Lerner's maximum utility argument c. economic efficiency d. Marx's position that private property is theft e. the Chinese divide-and-choose method of property division
Which of the following would contribute to a sustained high rate of economic growth in the long run in an economy?
A) growth in capital per hour worked accompanied by technological change B) increases in labor force participation rates as workers who are out of the labor force pursue rising wages C) a shift of workers in the economy from the agricultural sector to the nonagricultural sector D) an influx of immigrant labor into an economy without any accompanying technological change