Which of the following is TRUE in perfect competition at long-run equilibrium?
A. P = ATC = MC = MR
B. Economic profit is $0.
C. ATC is minimized.
D. all of these
Answer: D
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A decrease in the money supply
a. lowers the interest rate, causing a decrease in investment and a decrease in GDP b. lowers the interest rate, causing a decrease in investment and an increase in GDP c. raises the interest rate, causing an increase in investment and a decrease in GDP d. raises the interest rate, causing an increase in investment and an increase in GDP e. raises the interest rate, causing a decrease in investment and a decrease in GDP
If capital deepening increases from $100 to $150 and this increase results in worker's productivity increasing from $60 to $70, and if there were 100 workers, then GDP would increase by
a. $10,500 b. $6,000 c. $1,500 d. $7,000 e. $1,000
Are funds available on a credit card included in a definition of the money supply?
a. Yes, because these funds can be used to pay for goods and services. b. Yes, because these funds are included in M2. c. No, because these funds are hard to measure total credit card spending. d. No, because these funds are not a store of value.
A result of welfare economics is that the equilibrium price of a product is considered to be the best price because it
a. maximizes both the total revenue for firms and the quantity supplied of the product. b. maximizes the combined welfare of buyers and sellers. c. minimizes costs and maximizes output. d. minimizes the level of welfare payments.