In the above figure, if the firm is producing at Q3 and charging a price of P3, it should
A) increase output and decrease price.
B) decrease output and increase price.
C) not change output or price.
D) shut down.
B
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Consumer purchases which are consumed at the time and place of purchase are categorized by the Bureau of Economic Analysis as
A) durable goods. B) nondurable goods. C) services. D) investments.
In the Solow growth model, countries with identical total factor productivities, identical labor force growth rates, and identical savings rates
A) always have identical levels of capital per worker and output per worker. B) in equilibrium, have identical levels of capital per worker and output per worker. C) in equilibrium, have identical levels of capital per worker but not necessarily identical levels of output per worker. D) in equilibrium, have identical levels of output per worker but not necessarily identical levels of capital per worker.
The percentage of demand deposits that banks and other financial intermediaries are required to keep in cash reserves is known as
a. the fractional reserve requirement b. the excess reserve requirement c. the legal reserve requirement d. the interest rate e. M1 money
Which political philosophy believes that the government should equalize the incomes of all members of society?
a. Utilitarianism. b. Liberalism. c. Libertarianism. d. None of the above is correct.