In order to maximize profits, a firm should produce at the output level for which
a. average cost is minimized.
b. marginal revenue equals marginal cost.
c. marginal cost is minimized.
d. price minus average cost is as large as possible.
b
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Why did the money supply fall during the Great Depression?
a. The monetary base fell throughout the Great Depression. b. The amount of currency fell during the Great Depression. c. The ratio of currency/deposits fell during the Great Depression. d. The money multipier rose during the Great Depression. e. None of the above.
Marginal resource cost is:
A. the increase in total resource cost associated with the production of one more unit of output. B. the increase in total resource cost associated with the hire of one more unit of the resource. C. total resource cost divided by the number of inputs employed. D. the change in total revenue associated with the employment of one more unit of the resource.
A set of ideas about the economy that have been organized in a logical framework is called
A. economic theory. B. data development. C. empirical analysis. D. a methodology.
Because the Fed's current tool for changing the interest rate is to change the ________, once the decision has been made to make the change, ________.
A. rate it pays on bank reserves; there is in effect no implementation lag B. rate it pays on bank reserves; the implementation lag is usually very long C. required reserve rate; the implementation lag is usually very long D. required reserve rate; there is in effect no implementation lag