An inward shift in the entire production possibilities frontier
A. represents economic growth.
B. means that the economy can produce more of both goods.
C. takes place if there is an expansion in the labor force.
D. means that previous levels of production are now unobtainable.
D. means that previous levels of production are now unobtainable.
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Tight monetary policy ________ interest rates which ________ the demand for a currency and ________ the fundamental value of the exchange rate.
A. increases; increases; decreases B. decreases; decreases; decreases C. increases; increases; increases D. increases; decreases; increases
In the United States, the most commonly cited measure of the price level is the consumer price index
Indicate whether the statement is true or false
Giuseppe's Pizza is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price is $15, what is Giuseppe's profit-maximizing output?
A) 2 pizzas per hour B) 3 pizzas per hour C) 4 pizzas per hour D) 0 pizzas per hour
Why is it true that under monopolistic competition the price is above marginal revenue while under pure competition price is equal to marginal revenue?
What will be an ideal response?