If P = MC for all goods in a free-market economy, then
a. the desire for utility maximization will lead consumers to buy the amount of each good at which MU = MC.
b. the desire for profit maximization will lead consumers to buy the amount of each good at which MU = MC.
c. the desire for utility maximization will lead consumers to buy only those goods that have low opportunity costs.
d. the desire for profit maximization will lead all firms to stop producing in the long run (though possibly not in the short run).
a
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The amount by which the federal government's annual expenditures exceed its annual receipts is the
A) federal debt. B) federal government budget deficit. C) federal government budget surplus. D) federal profit.
When calculating GDP, the Bureau of Economic Analysis releases its "advanced estimate" of a quarter's GDP approximately
A) three months before the quarter has ended. B) one year after the quarter has ended. C) three months after the quarter has ended. D) one month after the quarter has ended.
Economic theory and experience since 1973 indicate that, under floating exchange rates, a country's fiscal and monetary policies in the short-run and the long-run can
A) have both domestic and foreign economic impact. B) have domestic or foreign economic impact, but not both. C) have domestic but not foreign economic impact. D) have foreign but not domestic economic impact. E) have neither domestic nor foreign economic impact.
A firm’s total revenue is simply the price of its product multiplied by the quantity sold.
Answer the following statement true (T) or false (F)