If AVC is $10 when P = MC, a firm
A) will have positive economic profits if price is greater than $10.
B) is producing too little output.
C) should shut down if price is less than $10.
D) is experiencing economies of scale.
C
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A current account surplus implies that
A) the country is a net lender with the rest of the world. B) the country is running a net capital account surplus. C) foreign investment in domestic securities is at very low levels. D) All of the above.
High inflation that persists beyond the ending of expansionary policies is probably ________
A) demand-pull inflation B) Humphrey-Hawkins inflation C) cost-push inflation D) a result of unemployment remaining below the natural rate E) none of the above
Which tax revenue given in the graph will be generated by two different tax rates?
A. F
B. G
C. H
D. I
If First Interstate Bankcorp has demand deposits of $8 billion, actual reserves of $1.4 billion, and the reserve requirement is 15%, the bank's excess reserves are
A. $100 million. B. $200 million. C. $400 million. D. $800 million.