In long-run equilibrium, every perfectly competitive firm
a. maximizes its output
b. chooses its plant size and output level to operate at minimum long-run marginal cost
c. chooses its plant size and output level to operate at minimum long-run average total cost
d. earns an economic profit
e. suffers an economic loss
C
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The Federal Reserve System consists of
A) one Federal Reserve Bank and 12 Federal Reserve districts, each with one branch bank. B) a main central bank located in New York, with 11 additional branch banks located across the country. C) 12 Federal Reserve Banks, each of which have a degree of independence from the U.S. government. D) 12 independent banks in the 12 Federal Reserve districts, each of which are owned and controlled by the federal government.
The demand curve is downward-sloping because of the law of ____
a. diminishing marginal utility b. diminishing consumer equilibrium c. consumer equilibrium d. diminishing utility maximization
The level of real GDP and the price level that equate the aggregate quantity demanded and the aggregate quantity supplied is known as macroequilibrium
Indicate whether the statement is true or false
A production possibilities frontier shows the combinations of various goods that should be produced
a. True b. False Indicate whether the statement is true or false