Mrs. Lovejoy decides to invest in companies which she believes can produce their goods at the lowest possible cost. Mrs. Lovejoy is investing in companies that are
A) always going to be profitable. B) productively efficient.
C) both productively and allocatively efficient. D) allocatively efficient.
B
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Increase in the real interest rate will ________ the expenditure curve:
A) decrease. B) increase. C) not change. D) none of the above.
According to the "square-root rule" of the transactions demand for money, the demand for money would
A) vary inversely with the interest rate. B) be zero if there were no costs to switching between money and interest-earning assets. C) vary less than proportionately with income. D) All of the above are correct.
At the current level of production, if the firm's marginal costs exceeds marginal benefits, then
a. The company should produce more b. The company is maximizing profit at this output c. The company is producing too much d. Not possible to determine
Will future generations have to deal with the national debt?