A typical wheat farmer would never consider cost-plus-markup pricing because
A) he cannot clearly estimate his costs.
B) the most profitable price he can ask for is the prevailing market price.
C) the government won't allow it.
D) he is a price searcher.
B
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If we compare the four sources of spending in the economy we see that
A) household consumption is the smallest. B) government expenditure is the largest. C) business investment is the largest. D) household consumption is the largest.
In the recent Global Economic Crisis, the negative wealth effect caused
A) LM curve to shift to the right. B) LM curve to shift to the left. C) IS curve to shift to the left. D) LM curve to shift to the right.
A firm is currently operating where the MC of the last unit produced is $84, and the MR of this unit is $70 . What would you advise this firm to do?
a. Shut down. b. Increase output. c. Stay at its current output. d. Decrease output. e. Decrease price.
Income distribution in the United States over the past 40 years has become more equal
Indicate whether the statement is true or false