In the figure above, if a tax is imposed that generates an efficient allocation of resources, then consumers will pay a price of
A) $250 per unit.
B) $200 per unit.
C) $150 per unit.
D) $100 per unit.
B
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The main goals of monetary policy include all of the following EXCEPT
A) attaining the maximum sustainable growth of potential GDP. B) keeping the unemployment rate close to the natural unemployment rate. C) keeping the long term nominal interest rate equal to the real interest rate plus the inflation rate. D) keeping the inflation rate low. E) keeping the long-term interest rate at a moderate level.
The overall mortality rate in the United States has declined for the past 30 years
Indicate whether the statement is true or false
The consumption theories proposed by Modigliani and Friedman suggest that during recessions consumers reduce
A) consumption and maintain saving. B) saving and maintain consumption. C) consumption and saving. D) consumption and investment.
Which of the following holds true at the chosen level of output in the long run for firms in a perfectly competitive market?
A. MR = AVC B. P = minimum AVC C. P = MC D. MR > ATC