A firm in a perfectly competitive market can maximize its profits by producing:
A. the level of output where marginal cost equals marginal revenue.
B. any level below where marginal cost equals marginal revenue.
C. any level beyond where marginal cost equals marginal revenue.
D. slightly below its maximal capacity.
A. the level of output where marginal cost equals marginal revenue.
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The quantity theory of money is the idea that in the long run
A) the quantity of money is determined by banks. B) the quantity of money serves as a good indicator of how well money functions as a store of value. C) the quantity of money determines real GDP. D) an increase in the growth rate of the quantity of money leads to an equal increase in the inflation rate.
Which of the following will cause the U.S. money supply to expand?
a. a commercial bank uses excess reserves to extend a loan to a customer b. a commercial bank purchases U.S. securities from the Fed as an investment c. an increase in reserve requirements d. an increase in the discount rate
If businesses found that changing economic conditions made it attractive for them to hire a larger number of economics majors, we would expect
a. economics majors to receive a greater return on their human capital investment. b. a decrease in the employment opportunities for economics majors. c. lower wages for economics majors. d. fewer students to major in economics.
Which of the following contains most of the characteristics of a public good?
A. vaccinations B. a public park C. a civil defense system D. metal recycling