The profit-maximizing and the least-cost combination of inputs are:
A. the result of unrelated decisions.
B. always identical.
C. such that the minimization of costs always results in profit maximization.
D. such that the maximization of profits always entails the least-cost combination of inputs.
Answer: D
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If the Fed fears a recession, it
A) decreases aggregate supply. B) buys government securities. C) sells government securities. D) decreases the quantity of money. E) decreases aggregate demand.
Which of the following $1,000 face-value securities has the highest yield to maturity?
A) a 5 percent coupon bond with a price of $600 B) a 5 percent coupon bond with a price of $800 C) a 5 percent coupon bond with a price of $1,000 D) a 5 percent coupon bond with a price of $1,200
The channels through which monetary policy affects economic activity are called the ________ of monetary policy
A) transmission mechanisms B) flow mechanisms C) distribution mechanisms D) allocational mechanisms
If the value of the price elasticity of demand is -0.2, this means that a
a. 20 percent decrease in price causes a 1 percent increase in quantity demanded b. 0.2 percent decrease in price causes a 1 percent increase in quantity demanded c. 5 percent decrease in price causes a 1 percent increase in quantity demanded d. 0.2 percent decrease in price causes a 0.2 percent increase in quantity demanded e. 100 percent decrease in price causes a 200 percent increase in quantity demanded