Productive efficiency requires production at a quantity such that:
a. MC = MR
b. MC = ATC
c. MC = D
d. ATC = D
b
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In 1938, another Agricultural Adjustment Act was passed. The error of the 1933 Act was now avoided. What had that error been?
(a) Acreage allotments (b) Combining provisions for conservation with subsidies (c) Imposition of specific taxes on food processors (d) Excessive delegation of power
Sally can make 8 cups of soup per hour or 20 crackers per hour. Harry can make 10 cups of soup per hour or 30 crackers per hour. Can Sally and Harry gain from trade? If so, what is the range of prices of crackers for soup at which they would both find trade advantageous?
The ratio of the change in the equilibrium level of real GDP to the change in autonomous real expenditures is the
A. average propensity to consume. B. multiplier. C. marginal propensity to consume. D. unplanned investment.
If the Fed has a strong preference for stable prices relative to output, it responds to a price ________ with a ________ decrease in the interest rate.
A. increase; small B. increase; large C. decrease; large D. decrease; small