In order to maximize profits, a firm should decrease output whenever total cost exceeds total revenue
a. True
b. False
B
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At the national level, higher saving rates lead to ________ and higher standards of living.
A. greater investment B. slower growth C. greater current consumption D. crowding out
Refer to the above figure. A surplus occurs if the government imposes
A) a price floor at $60. B) a price floor at $20. C) a price ceiling at $60. D) a price ceiling at $20.
Firms can create value by
A) creating a brand name. B) by offering guarantees. C) by offering warranties. D) all of these choices.
While Keynesians and supply-siders agree that stabilization policy can affect levels of unemployment and inflation, they disagree over
a. how much taxes should be cut b. how much government spending should be increased c. how monetary policy should be used d. how consumers spend their tax reductions e. whether aggregate demand or aggregate supply is the critical variable