The use of countercyclical monetary and fiscal policy by the government and the Fed to steady the economy is known as
a. discretionary policy
b. monetarist policy
c. creative policy
d. stabilization policy
e. institutional policy
D
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Optimization in differences analyzes:
A) the total net benefits of the alternative that looks the most attractive. B) the change in the net benefits resulting from a shift from one alternative to another. C) only the costs of an alternative and not the benefits. D) the total net benefits of different alternatives.
For a monopoly earning positive economic profits at the profit-maximizing output level, all of the following are true EXCEPT
A) P > ATC. B) P > MR. C) P > MC. D) P = MR.
In a competitive market,
a. no single buyer or seller can influence the price of the product. b. there are only a small number of sellers. c. the goods offered by the different sellers are unique. d. accounting profit is driven to zero as firms freely enter and exit the market.
Refer to Scenario 9.9 below to answer the question(s) that follow. SCENARIO 9.9: Sponsors invest $250,000 in a new greeting card business on the promise that they will earn a return of 10% per year on their investment. The business sells 52,000 greeting cards per year. The fixed costs for the business include the return to investors and $79,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($3,000 per week). The business is open 52 weeks per year.Refer to Scenario 9.9. The annual total costs for the business sum to
A. $79,000. B. $104,000. C. $208,000. D. $312,000.