In order to change the money supply, the Fed might use which of the following tools?
A. Dual mandate
B. Reserve requirement
C. Fiscal policy
D. Deficit spending
D. Deficit spending
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Which of the following statements best describes the price, output, and profit conditions of monopolistic competition?
a. Price will equal marginal cost at the profit-maximizing level of output; profits will be positive in the long-run. b. Price will always equal average variable cost in the short run and either profits or losses may result in the long run. c. Marginal revenue will equal marginal cost at the short run, profit-maximizing level of output; in the long run, economic profit will be zero. d. Marginal revenue will equal average total cost in the short run; long-run economic profits will be zero.
Which of the following is not a role of the government in the economy?
a. Establishing and Enforcing the Rules of the Game. b. Limiting Competition c. Regulating Natural Monopolies d. None of the above are roles of the government in economic systems.
Exhibit 6-3 Unemployment categories CategoryWorkers Frictional unemployment250 Structural unemployment350 Cyclical unemployment600 Discouraged workers400 Underemployment450 According to data in Exhibit 6-3 and assuming the total number of workers is 8,400, the unemployment rate is:
A. 5 percent. B. 15 percent. C. 16 percent. D. 24 percent.
Firm's under conditions of perfect competition will
A) Will face a few other competitors in the market. B) Will face barriers to entry. C) Have no disproportionate influence on price. D) None of the above.