According to Say's law,
A) desired expenditures cannot be compared with actual expenditures.
B) desired expenditures are always less than actual expenditures.
C) desired expenditures are always equal to actual expenditures.
D) desired expenditures are always more than actual expenditures.
C
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The money multiplier tends to be greater when
A) individuals hold less cash. B) individuals hold more cash. C) the reserve ratio increases. D) banks hold more excess reserves.
Any method of producing a good or service is ________. It ________ the maximum profit that a firm can make
A) an information constraint; always increases B) a technology; always increases C) a technology; limits D) an information constraint; limits
Consider two resource markets in which the demand curves slope downward. In market A, the supply curve is horizontal, equilibrium price is $6, and 100 units of the resource are hired. In market B, the supply curve is vertical, equilibrium price is $20, and 30 units of the resource are hired. Which of the following is true?
a. All of the resource earnings in market A are economic rent. b. All of the resource earnings in both markets are economic rent. c. All of the resource earnings in market B are economic rent. d. None of the resource earnings in either market is an opportunity cost. e. None of the resource earnings in either market is economic rent.
A natural monopoly is producing an output level of 1,000 units per day. If the monopoly is broken up into 5 firms, then average total cost for each of the 5 firms
a. will exceed the monopolist's average total cost b. will equal the monopolist's average total cost c. will fall below the monopolist's average total cost d. may equal or fall below the monopolist's average total cost e. may equal or exceed the monopolist's average total cost