A theory
A. is usually based on a set of value judgments.
B. cannot be tested.
C. is a possible explanation for a natural phenomenon.
D. always fits with real-world data.
C. is a possible explanation for a natural phenomenon.
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Which one of the following could cause a recessionary gap?
A. Interest rates are too low. B. Consumers spend more than they earn. C. Price levels are too high. D. Businesses spend more than they save.
Which of the following flows from the government to the households?
a. Goods and services b. Resources of production c. Taxes d. Government services e. Loans
A perfectly competitive firm may earn economic profits in
a. only the short run. b. only the long run. c. the short run and the long run. d. neither the short run nor the long run.
In the long-run equilibrium of a competitive market, the number of firms in the market adjusts until the market demand is satisfied at a price equal to the minimum of
a. average fixed cost for the marginal firm. b. marginal cost of the marginal firm. c. average total cost of the marginal firm. d. average variable cost of the marginal firm.