What is meant by marginal revenue?
What will be an ideal response?
Marginal revenue is the additional revenue that a firm takes in when it increases output by one additional unit. In perfect competition, price and marginal revenue are equal.
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Suppose the actual federal funds rate is equal to the rate implied by a particular inflation goal. In this situation, the Taylor rule implies that
A) monetary policy will tend to produce that inflation rate. B) monetary policy is contractionary. C) monetary policy is expansionary. D) fiscal policy will result in a balanced budget.
Which statement is true?
A. The poverty line is raised each year. B. The poverty line is lowered each year. C. The poverty line stays the same from one year to the next. D. None of these statements are true.
Assume sticky prices and given expectations of future exchange rates, what is the immediate effect on the exchange rate of the U.S. dollar if there is a temporary increase in the quantity of U.S. dollars?
a. U.S. nominal and real returns rates decline while euro rates hold steady, and the U.S. dollar depreciates against the euro. b. U.S. nominal returns rise, U.S. real returns fall, euro rates rise, and the U.S. dollar appreciates against the euro. c. U.S. nominal returns fall, U.S. real returns rise, euro rates fall, and the U.S. dollar appreciates against the euro. d. U.S. dollar returns and euro returns both rise, leaving the exchange rate unchanged.
An example of the opportunity to gain human capital would be:
A. a firm offering on-the-job training. B. a firm starting a community garden for its employees. C. a firm expanding and creating 20 more jobs. D. All of these are examples of human capital.