In the above figure, if the price is P1, the firm maximizes its profit by producing
A) nothing.
B) where MC equals ATC.
C) where MC equals P1.
D) where ATC equals P1.
C
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In the market for books, initially there are no taxes on books. Books are normal goods. The government introduces a tax of $4 a book and, at the same time, people's income fall by $4,000 a year
Following these two changes, the equilibrium quantity of books A) decreases. B) increases. C) remains unchanged. D) either increases or decreases. We cannot say which.
During 2001-2011, what happened to the federal budget deficit?
What will be an ideal response?
Monetary policy is more effective in an open economy than in a closed economy
Indicate whether the statement is true or false
Which of the following is TRUE of trends in the number of new U.S. patents?
A. The number of new patents granted each year has remained unchanged since the early 1970s. B. The number of new patents granted each year declined by more than 50 percent after 2001. C. There was a surge in new patents in the latter part of the 1990s. D. There was a steady increase in new patents throughout the 1970s.