Suppose your firm operates in a perfectly competitive market and decides to double its output. How does this affect the firm's marginal profit?
A) Marginal revenue and marginal cost increase
B) Marginal revenue increases but marginal cost remains the same
C) Marginal cost may change but marginal revenue remains the same
D) Marginal revenue and marginal cost decrease
B
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The convergence theory states that:
A. poorer countries will grow faster than rich ones. B. rich countries will grow faster than poor ones. C. poor countries tend to converge together and stagnate. D. rich countries tend to leapfrog ahead maintaining the gap in global development.
A recession can be expected to reduce inflation in the economy if the recession is caused by a(n)
a. increase in aggregate demand. b. increase in aggregate supply. c. decrease in aggregate demand. d. decrease in aggregate supply.
In late 2008, the U.S. government extended unemployment insurance benefits for seven additional weeks, in recognition of the growing unemployment problem. This extension is an example of
A) automatic fiscal policy. B) discretionary fiscal policy. C) expansionary monetary policy. D) supply-side fiscal policy.
(Advanced analysis) Answer the question on the basis of the following information: The equations for the demand and supply curves for a particular product are P = 10 - .4Q and P = 2 + .4Q, where P is price and Q is quantity expressed in units of 100
After an excise tax is imposed on the product, the supply equation is P = 3 + .4Q. Refer to the given information. The equilibrium quantity after the excise tax is imposed is: A. 750 units. B. 850 units. C. 875 units. D. 950 units.