When the price of an input _____, a firm's least-cost production method never uses ______ of that input and usually employs _____.
A. increases; less; the same amount
B. increases; less; more
C. decreases; more; less
D. decreases; less; more
D. decreases; less; more
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Which statement is true?
A. Poverty has been a problem only since 1933. B. Poverty cannot be inherited. C. There are more poor Americans today than at any other time in our history. D. Poverty is less of a problem today than it was in the early 1960s.
Suppose a wave of investor and consumer pessimism causes a reduction in spending. If the Federal Reserve chooses to engage in activist stabilization policy, it should
A. decrease the money supply and increase interest rates. B. increase the money supply and decrease interest rates. C. decrease government spending and increase taxes. D. increase government spending and decrease taxes.
The government of Imbrusia introduces new taxes and cuts spending to mitigate recession. Which of the following is likely to happen in Imbrusia, according to the Keynesians?
A. Increase in investment B. Increase in consumption C. Increase in unemployment D. Increase in inflation
At any level of a mining firm's output, total cost will be equal to extraction costs:
A. Plus user costs B. Minus user costs C. Times user costs D. Divided by user costs