In the long-run equilibrium, perfectly competitive firms produce where
A) marginal cost is minimized.
B) average total cost is minimized.
C) average revenue is zero.
D) All of the above are correct.
B
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Expansionary monetary policy ________
A) lowers tax rates B) increases interest rates C) increases tax rates D) lowers interest rates
Which of the following is evidence of a shortage of walnuts?
A) The equilibrium price of walnuts falls due to a decrease in demand. B) The quantity of walnuts demanded is greater than the quantity supplied. C) Firms lower the price of walnuts. D) The price of cashews is lowered in order to make up for the walnut shortage.
Refer to the graph above. Assume that the economy is in a recession with a price level of P 1 and output level Q 1. The government then adopts an appropriate discretionary fiscal policy. What will be the most likely new equilibrium price level and output?
P1 and Q1 P1 and Q3 P2 and Q2 P2 and Q4
A medical researcher suggests that the new flu shot will prevent all forms of the flu, but it was never tested or proved to be true. Which of the following antitrust acts are being violated?
A. Clayton Act B. Sherman Act C. Federal Trade Commission Act D. No Antitrust law is being violated