To promote economic efficiency, government should
a. keep all prices as low as possible.
b. keep all prices high so that people will save more money.
c. allow the market to set low prices for abundant goods and high prices for scarce goods.
d. never interfere with firms' price setting powers.
c
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Demand for a product is given by Q = 200 - P and supply is given by Q = 0.5P - 10. If the quantity demanded rises by 10 units at every possible price, then the equilibrium quantity will be
a. 40 units b. 50 units c. 60 units d. 100 units
Based on the data in the table above, at the short-run equilibrium
A) the unemployment rate is less than the natural unemployment rate. B) the unemployment rate is greater than the natural unemployment rate. C) the money wage rate will rise in the long run. D) the economy is at full employment.
The branch of economics that focuses on the conduct of affairs within narrowly defined units, such as households or business firms, is called: a. macroeconomics
b. microeconomics. c. socioeconomics. d. applied economics.
If price is unchanging across the firm's entire production range, then for the firm selling bagels at $0.40 each,
a. P = MR = AR b. MR = MC = AC c. TR = TC = 0 d. TR – TC = 0 e. AC = MC = TC