The Dansby-Willig index measures the potential for a change in social welfare by examining the effect of changes in industry:
A. revenue.
B. production cost.
C. output.
D. profit.
Answer: C
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For a perfectly competitive firm, the market price of a good is
A) a given which the firm cannot change. B) determined by the firm in order to maximize its profit. C) equal to the firm's marginal revenue. D) Answers A and B are correct. E) Answers A and C are correct.
If the money supply grows at 5% and real GDP grows at 6%, the quantity theory predicts the inflation rate will be
A) -1%. B) 1%. C) 1.2%. D) 11%.
What would happen if the Fed tried to keep employment above the full-employment level?
a. The long-run aggregate supply curve would shift to the right. b. The aggregate supply curve would shift downward. c. Unemployment would increase. d. The price level would increase. e. The aggregate demand curve would shift to the left.
An incentive for managers to maximize profits is:
A. performance bonuses. B. reputation. C. takeovers. D. All of the statements associated with this question are correct.