If a firm competing in a price-taker market seeks to maximize profit, the firm should
a. increase output whenever marginal cost is less than average total cost.
b. increase output whenever marginal revenue is less than marginal cost.
c. choose the output where per-unit profit is greatest.
d. increase output whenever price exceeds marginal cost.
D
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Checking deposits are
A) not part of money. B) part of money. C) small in volume relative to currency in circulation. D) quite different from checking accounts.
Van, whose utility of wealth curve is shown in the above figure, owns a home that is valued at $100,000. There is a 10 percent chance that the house will be destroyed by hurricane. The value of insurance to Van is
A) $10,000. B) $15,000. C) $20,000. D) $30,000.
The ________ system of currency exchange was set up in 1944
A) managed float B) flexible C) gold standard D) Bretton Woods
Concerning economic growth, which of the following is true?
a. A favorable institutional environment will tend to attract more investment in human and physical capital. b. Poor nations grow slowly because they do not have access to modern technology c. Human and physical capital investments are largely irrelevant to economic growth. d. Nations achieve high rates of economic growth primarily because of their natural resource endowments.