During the Great Depression, economists first began studying the relationship between
A) changes in nominal GDP and changes in real GDP.
B) changes in aggregate expenditures and changes in GDP.
C) changes in stock prices and changes in price controls.
D) changes in GDP and changes in interest rates.
B
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When the financial institution is hedging interest-rate risk on its overall portfolio, then the hedge is a
A) macro hedge. B) micro hedge. C) cross hedge. D) futures hedge.
If a perfectly competitive firm is producing 2,500 units and, at the 2,500th unit, the difference between marginal revenue and marginal cost (MR - MC) is positive, which of the following is true?
A) The firm is maximizing profit. B) The firm should increase production to maximize profit. C) The firm should decrease production to maximize profit. D) The 2,500th unit costs more to produce than the firm earns in revenue.
Answer the following statements true (T) or false (F)
1. For a monopolist maximum profits will occur when the gap between average revenue (or price) and average cost is biggest. 2. In the long run equilibrium, a monopolist will earn zero economic profits. 3. In a monopoly at equilibrium, price is greater than marginal cost. 4. A monopolist will try to charge the highest price that it can charge. 5. In an unregulated monopoly at equilibrium, the output level is higher than the economically efficient level.
If scarcity didn't exist, neither would
A) rationing devices. B) competition. C) labor. D) capital. E) a and b