If marginal revenue exceeds marginal cost, to increase its profit the firm will
A) decrease its output.
B) increase its output.
C) keep its output the same.
D) shut down.
B
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Special-interest legislation is characterized by
a. concentrated costs and concentrated benefits b. concentrated benefits and widespread costs c. widespread benefits and widespread costs d. widespread benefits and concentrated costs e. zero costs
The cost of producing one more unit of a good is called marginal cost
a. True b. False Indicate whether the statement is true or false
Virtual currency unit 3 (VCU3) is different from VCU2 because:
a. VCU2 cannot be spent in the real world; VCU3 can be spent in the real world. b. In terms of convertibility, there is no difference; both VCU2 and VCU3 can be purchased with and sold for legal tender. c. VCU3 can directly affect real world demand, whereas VCU2 cannot affect real-world demand. d. In terms of spending potential, there is no difference because neither VCU2 nor VCU3 can be spent in the real world.
Based on the simple spending multiplier, which of the following will increase real GDP?
a. Decreased government spending b. Increased business taxes c. Increased investment spending d. Decreased consumption spending