In a typical economy, the dollar value of the total output for a period will equal the sum of consumption spending, planned investment spending, government spending, and net tax revenue
a. True
b. False
B
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Assume that price is greater than average variable cost. If a perfectly competitive seller is producing at an output where price is $11 and the marginal cost is $14.54, then to maximize profits the firm should
A) continue producing at the current output. B) produce a smaller level of output. C) produce a larger level of output. D) There is not enough information given to answer the question.
If people expect the price of packaged coffee to rise next week, coffee demand will
a. decrease now b. increase now c. stay the same now and increase next week d. stay the same now and decrease next week e. stay the same now and next week
When marginal cost exceeds marginal revenue,
a. marginal profit < 0. b. the firm should increase output. c. marginal profit + marginal cost > marginal revenue. d. marginal cost < marginal revenue ? marginal profit.
The figure below shows a shift in the production-possibility curve of a country from AB to AC. Here, S1 and C1 are the initial production and consumption points, respectively. S2 and C2 are the final production and consumption points, respectively. Which of the following is illustrated by this figure?
A. A small country experiencing a balanced growth B. A large country experiencing growth biased toward wheat production C. A large country experiencing a balanced growth D. A small country experiencing growth biased toward cloth production