For a perfectly competitive firm, at the profit-maximizing output average revenue equals marginal cost
Indicate whether the statement is true or false
TRUE
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What are the proximate causes of prosperity? How are they related to the fundamental causes of prosperity?
What will be an ideal response?
The long run is a time period in which
A) one year or less elapses. B) all factors of production are variable. C) all factors of production are fixed. D) there is at least one fixed factor of production and at least one variable factor of production.
The greater the degree of specialization in the economy, the: a. easier it is to discover a double coincidence of wants
b. more feasible is a barter system. c. less likely it is that monetary exchange will develop. d. harder it is to negotiate an exchange rate between all pairs of goods. e. more likely it is that individual consumers are self-sufficient.
If the central bank expands the money supply under floating exchange rates, it potentially stimulates the economy in two ways, namely:
A) by raising the price level and by increased competition. B) by lowering the rate of interest and by causing a depreciation of the currency. C) by creating higher spending and by increasing the budget deficit. D) by increasing worker productivity and creating R&D incentives for firms.