Economists and others use economic theory
a. only to analyze situations in which money changes hands.
b. as a partial basis for public policy recommendations.
c. to confuse their enemies.
d. to replace value judgments about important policy issues.
b
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Long-run equilibrium under monopolistic competition requires that
A. the demand curve intersects the average cost curve. B. the demand curve be tangent to the average cost curve. C. price be equal to marginal cost. D. quantity produced be at the point where average cost is at a minimum.
In the short run, the lowest price that a perfectly competitive firm will accept without closing its doors is found by examining the average variable cost curve.
Answer the following statement true (T) or false (F)
Graphically, economic growth is represented as
A. a movement along the production possibilities curve. B. a movement from a point inside the production possibilities curve to a point on the curve itself. C. an outward shift of the production possibilities curve. D. an inward shift of the production possibilities curve.
When you take $500 from your saving account and deposit it in your checking account, M1 increases.
Answer the following statement true (T) or false (F)