When there is no other way of producing a given level of output with a smaller total value of inputs, the firm is operating at:
a) maximum profit.
b) an irrelevant output.
c) maximum output.
d) minimum cost.
e) optimal output.
Ans: d) minimum cost.
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Mary wants to open her own taco stand. Which of the following will probably happen?
a. She will start up her business in a year because she has to wait to get government approval. b. She will start up her business in a month because of low cost and ease of entry. c. She will take six months to start her business because of all the government certificates she has to get. d. She will take three months to start her business because she has to borrow to pay start-up fees.
In the mid-1970s, the price of oil rose dramatically. This
A. shifted aggregate supply left. B. caused the U.S. prices to fall. C. shifted aggregate supply right. D. All of these responses are correct..
Apple is an American company, but its iPhones are assembled in China. The sale of each iPhone then is counted in China's GDP as:
A. investment. B. consumption. C. an import. D. an export.
In recent years, the Federal Reserve has:
A. paid closer attention to M1 than M2 in setting monetary targets. B. relied more on changes in the discount rate than open-market operations in establishing monetary policy. C. has increased M2 at a fixed annual rate, regardless of the health of the economy. D. taken an activist, pragmatic approach to monetary policy, paying close attention to interest rates.