A perfectly competitive firm's short-run supply curve is at its lowest point when MC equals the minimum point of:
A) the average fixed cost curve.
B) the marginal revenue curve.
C) the average total cost curve.
D) the average variable cost curve.
Answer: D) the average variable cost curve.
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All of the following are part of the "taxes" provision of the Patient Protection and Affordable Care Act (ACA) except
A) investors earning more than $200,000 pay a new tax on their investment income. B) workers earning more than $200,000 pay higher Medicare payroll taxes. C) beginning in 2018, all taxes on employer-provided health insurance plans will be reduced or eliminated. D) pharmaceutical firms and health insurance firms pay new taxes.
An appropriate test of the effectiveness of an economic model is
A) the number of variables contained within the model. B) the model's ability to predict future economic activity. C) the number of economists who have worked on the model. D) the number of assumptions which the economist has made.
The technique that addresses the problem of assigning inputs to specific industries is
A. known as laissez faire. B. input-output analysis. C. cost-benefit analysis. D. a production possibilities frontier.
Under the Bretton Woods System each participating country had to:
A. adopt capital controls. B. be willing to exchange their own currency for gold. C. hold ample reserves of currency of each of the participating countries. D. stand ready to exchange its own currency for U.S. dollars at a fixed exchange rate.