In the short run, a perfectly competitive firm's most profitable level of output is where:
a. marginal cost exceeds marginal revenue.
b. total revenue is at a maximum.
c. marginal cost equals marginal revenue.
d. All of these.
c
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When the legal reserve requirement is changed,
a. the money multiplier is changed but the amount of excess reserves in the banking system is unchanged b. the money multiplier is unchanged but the amount of excess reserves in the banking system is changed c. the size of the money multiplier and the amount of excess reserves change in the opposite direction from the legal reserve requirement d. the size of the money multiplier and the amount of excess reserves change in the same direction as the legal reserve requirement e. neither the money multiplier nor the amount of excess reserves change.
Dividing the dollar value of total sales by the cost of making those sales is one way that businesses often measure their
A. accountability. B. profitability. C. liability. D. productivity.
Using the notation Pt to designate this period's price level and Pt-1 to designate last period's price level, the formula for measuring the inflation rate from last period to this period is
A) [(Pt - Pt - 1 ) / Pt] × 100. B) [(Pt -1 - Pt) / Pt - 1] × 100. C) [(Pt - Pt - 1 ) / Pt - 1] × 100. D) [(Pt -1 - Pt) / Pt] × 100.
Lower inflation is usually accompanied by
a. lower nominal interest rates b. lower real interest rates c. higher nominal interest rates d. higher real interest rates e. zero real interest rates