For a perfectly competitive firm, price is the same as
A) marginal revenue.
B) average variable cost.
C) total revenue.
D) Both answers A and B are correct.
A
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With fixed exchange rates, a country
A) cannot conduct independent monetary policy. B) can conduct independent monetary policy. C) cannot conduct independent fiscal policy. D) Both A and C.
Answer the following statements true (T) or false (F)
1. About one-fifth of all U.S. households had incomes of $100,000 or more in 2011. 2. In the U.S., the top 20% of households received a little more than 50% of total pre-tax income in 2011. 3. The Lorenz curve is a graph that relates income to household spending. 4. The Gini coefficient or ratio is a summary measure of income inequality derived from the Lorenz curve. 5. The distribution of household income in the United States becomes more unequal after taxes and transfer payments are taken into account.
If the difference between the marginal benefit and the marginal cost of a good is as large as possible,
A) resources are being used with maximum efficiency. B) resources would create more value producing other goods and hence the production of this good should be decreased. C) more of the good should be produced. D) allocative efficiency has been attained. E) Both answers A and D are correct.
The price elasticity of demand equals magnitude of the
A) change in the price divided by the change in quantity demanded. B) change in the quantity demanded divided by the change in price. C) percentage change in the price divided by the percentage change in the quantity demanded. D) percentage change in the quantity demanded divided by the percentage change in the price.