In the above figure, if the firm is facing demand curve d2, then to maximize profits it will produce at output level
A) A.
B) B.
C) C.
D) D.
B
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The principal objective of the Federal Reserve System is to
a. circulate coins and paper Federal Reserve Notes. b. subsidize the income of member banks. c. help stabilize the economy through monetary policy. d. make profits to remit to the Treasury Department.
Marginal product:
A. is always less than average product. B. may initially increase, then diminish, and ultimately become negative. C. may initially increase, then diminish, but never become negative. D. diminishes at all levels of production.
As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.
If the cost of the Department of Agriculture's minimum food budget for two people is $2,000 per year, the official poverty line for a family of two would be
A. $667. B. $2,000. C. $6,000. D. $12,000.