Refer to the diagram. If a firm produces output Q 1 at a unit cost of b, then the:
A. firm is not fulfilling the least-cost rule in employing resources.
B. firm may or may not be maximizing profits.
C. marginal product per dollar's worth of each resource employed is not the same.
D. firm has achieved minimum efficient scale.
B. firm may or may not be maximizing profits.
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Political freedom can sometimes moderately reduce economic growth because
A) campaign contributions rob the economy of investment. B) special interest groups may gain at the expense of the overall economy. C) most jobs are in unions that are politically connected. D) none of the above.
Convergence of the income gap has been most dramatic between
A) Hong Kong and the United States. B) the Central European countries and the United States. C) Africa and the United States. D) South America and the United States.
Suppose the U.S. GDP growth rate is slower relative to other countries' GDP growth rates. This will
A) shift the aggregate demand curve to the left. B) move the economy down along a stationary aggregate demand curve. C) shift the aggregate demand curve to the right. D) move the economy up along a stationary aggregate demand curve.
The Federal Reserve can directly affect its monetary policy ________, which then affect its monetary policy ________
A) goals; targets B) targets; tools C) targets; goals D) goals; tools