Refer to the diagram. To maximize profit or minimize losses, this firm will produce:
A. K units at price C.
B. D units at price J.
C. E units at price A.
D. E units at price B.
C. E units at price A.
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In contrast to the structural deficit, the cyclical deficit reflects
A. Changes in discretionary fiscal policy. B. Fluctuations in economic activity. C. Fiscal policy decisions. D. Changes in the "full-employment" deficit.
In the long run, if price is less than average cost
A) there is an incentive for firms to exit the market. B) there is no incentive for the number of firms in the market to change. C) there is profit incentive for firms to enter the market. D) the market must be in long-run equilibrium.
If a fiscal expansion financed by government bond sales does not affect interest rates, then:
A. no crowding out will occur. B. crowding out will be so great that output will decline. C. crowding out will be relatively large. D. crowding out will be relatively small.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point B to Point C so that an additional 20 OLED televisions could be produced, production of LCD televisions would have to be reduced by
A. more than 30. B. exactly 60. C. fewer than 30. D. exactly 30.