A lender of last resort can prevent the spread of financial crises
Indicate whether the statement is true or false
TRUE
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When people change their minds about what they want simply because of the timing of the decision, economists refer to it as:
A. time inconsistency. B. information overload paradox. C. cost-price inconsistency. D. time barriers to optimization.
The slope of the indifference curve for goods X and Y is called the marginal:
a. product rate. b. rate of transformation. c. rate of substitution. d. rate of utility.
Macroeconomics involves the study of the decision-making of individual firms or individuals.
Answer the following statement true (T) or false (F)
Doggy Treats is selling dog treats in a purely competitive market. Its output is 800 treats, which it sells for $10 a treat. At the 800-treat level of output, the marginal cost is $11, the average variable cost is $9.00, and the average variable cost is
$8.00. Should the firm increase output, decrease output, or not produce? Why? How should the firm determine that optimal level of output? What will be an ideal response?