A firm's producer surplus equals its economic profit when
A) average variable costs are minimized.
B) average fixed costs are minimized.
C) marginal costs equal marginal revenue.
D) fixed costs are zero.
E) total revenues equal total variable costs.
D
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How does expansionary monetary policy increase spending in the economy compared to how expansionary fiscal policy increases spending in the economy?
What will be an ideal response?
Demand for clothing tends to be
a. elastic because there are few substitutes for clothing b. inelastic because there are few substitutes for clothing c. elastic because expenditures for clothing represent a large part of the consumer's budget d. inelastic because expenditures for clothing represent a large part of the consumer's budget e. elastic because it is a broadly defined good
A possible budget reform involves: a. a quadrennial budget
b. breaking down the budget into increasingly small budget lines. c. appointing agency heads with different priorities than those of elected representatives. d. to simplify the budget document by concentrating only on major groupings and eliminating line items. e. to eliminate the operating budget.
Public saving is negative when:
A. the government's budget is balanced. B. there is a government budget deficit. C. after-tax income of households and businesses is greater than consumption expenditures. D. there is a government budget surplus.