If a purely competitive firm is producing a level of output greater than its profit-maximizing output, then marginal revenue is greater than marginal cost.
Answer the following statement true (T) or false (F)
False
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In which of the following cartels is total cartel profit likely to be the highest?
A) a cartel made up of firms of various sizes each producing the same quantity of a differentiated product B) a cartel made up of identical firms each producing the same quantity of a homogeneous product C) a cartel made up of equal sized firms each producing different quantities of a differentiated product D) a cartel made up of firms of various sizes each producing different quantities of a homogeneous product
Everything else held constant, if a central bank makes an unsterilized sale of foreign assets, then the domestic money supply will ________ and the domestic currency will ________
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
Stagflation is generally caused by:
a. an increase in aggregate demand. b. a decrease in aggregate demand. c. an increase in aggregate supply. d. a decrease in aggregate supply.
The connection between domestic saving and investment to the trade balance explains why economists view the balance of trade as a fundamentally __________________ phenomenon.
a. microeconomic b. positive c. negative d. macroeconomic