The rate of production at which marginal revenue equals marginal cost is
A. the firm's shutdown point.
B. the point where profits are maximized.
C. what determines the equilibrium price in the market.
D. a point of negative profits for the firm.
Answer: B
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If the Federal Reserve raises or lowers interest rates too late, it could result in a ________ policy that destabilizes the economy
A) budgetary B) fiscal C) procyclical D) countercyclical
With velocity constant and equal to 2, a $10 billion increase in the money supply shifts the LM curve to the right by
A) $2 billion. B) $5 billion. C) $10 billion. D) $20 billion.
Each of the following, except one, can explain why a given job pays a compensating wage differential. Which is the exception?
a. The job requires costly training. b. The job is dangerous. c. The job is in a city with a high cost of living. d. The job requires a very high level of physical exertion. e. An increase in product demand raises the demand for labor in this job.
Explain how
(i) a risk-averse individual, (ii) a risk-neutral individual, and (iii) a risk-preferring individual would respond to the opportunity of placing a bet at fair odds.