For profit-maximizing, competitive firms, the demand curve for each factor of production equals the value of the marginal product of that factor
a. True
b. False
Indicate whether the statement is true or false
True
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A major difference between a monopolist and a perfectly competitive firm is that
A) the monopolist is certain to earn economic profits. B) the monopolist's marginal revenue curve lies below its demand curve. C) the monopolist engages in marginal cost pricing. D) the monopolist charges the highest possible price that he can.
Which of the following is an example of a normative statement?
A. The average price of a Whopper Jr. is $1.69. B. The United States ought to adopt a flat rate personal income tax. C. A higher percentage of prostitutes incarcerated in Miami test positive for AIDS when compared to registered prostitutes in Nevada. D. Average growth in real GDP per year was 1.84 percent between 2000 and 2010.
If the economy is operating at a 7 percent unemployment rate we are operating
A. inside the production possibilities curve. B. on the production possibilities curve. C. outside the production possibilities curve.
Index funds are often preferred to other mutual funds because:
A. they have greater liquidity. B. on average they have lower management fees. C. they offer greater diversification. D. they are managed better.