Which of the following is true of a perfectly competitive firm?
A. The firm is a price maker.
B. If the firm wishes to maximize profits it will produce an output level in which marginal revenue exceeds marginal cost.
C. The firm will not earn an economic profit in the long run.
D. The firm's short-run supply curve is its MC curve below its AVC curve.
Answer: C
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The value of net exports is:
A. exports imports. B. imports exports. C. exports+ imports. D. (exports +imports) tariffs.
Which of the following is always measured in prices from a base-year?
a. both nominal and real GDP. b. nominal but not real GDP. c. real but not nominal GDP. d. neither nominal nor real GDP.
Inflation affects borrowers and lenders differently. After signing a contract with a fixed nominal interest rate, it can be expected that
A. borrowers will hope that prices fall. B. lenders will hope that prices rise. C. lenders will hope that the purchasing power of money will fall. D. borrowers will hope that prices rise.
Which of the following was not a criticism of the unconventional monetary policy used by the Fed in 2009 and 2010?
A. Tendency toward higher unemployment B. Tendency toward higher inflation C. Usurping authority which should be allocated to Congress D. Determining which banks would be allowed to fail