If the firm in the graph were producing Q2 and charging P2, it:
These are the cost and revenue curves associated with a firm.
A. represents the perfectly competitive outcome.
B. is an efficient outcome.
C. is an outcome that eliminates deadweight loss.
D. All of these statements are true.
D. All of these statements are true.
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The income that households and noncorporate businesses receive is called
a. personal income. b. net national product. c. disposable personal income. d. national income.
The substitution effect is the change in the quantity demanded of a good that results from
a. the effect of a change in the price on consumer purchasing power. b. the effect of a change in the price making the good more or less expensive relative to other goods, holding constant the effect of the price change on consumer purchasing power. c. either a or b d. none of the above.
Moral hazard is more likely to arise when:
A. one side of an economic relationship cannot observe the behavior of those on the other side. B. adverse selection is present. C. insurance policies have high deductibles. D. people are uninsured.
The Federal Open Market Committee has responsibility for
A. advising the Treasury Department on monetary policy. B. appointing members to the Board of Governors of the Federal Reserve system. C. printing money. D. issuing orders to buy or sell government securities for the Fed.