If a perfectly competitive firm achieves productive efficiency then
A) it is producing at minimum efficient scale.
B) it will raise its price in order to earn an economic profit.
C) it is producing the good it sells at the lowest possible cost.
D) the price of the good it sells is equal to the benefit consumers receive from consuming the last unit of the good sold.
C
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When a bank makes a loan by crediting the borrower's checking account balance with an amount equal to the loan:
A. money is created. B. the bank immediately loses reserves. C. the bank gains new reserves. D. the Fed has made an open-market purchase.
Why did the classical economists think that large-scale unemployment was not possible in a market economy?
What will be an ideal response?
An increase in consumer spending caused by an increase in consumer confidence would cause
A) the aggregate demand curve to shift up and to the right. B) the aggregate demand curve to shift down and to the left. C) a movement down and to the right along the aggregate demand curve. D) a movement up and to the left along the aggregate demand curve.
Wage discrimination means workers with equal productivity are paid unequal wages, or workers with unequal productivity are paid equal wages
a. True b. False Indicate whether the statement is true or false