Refer to Figure 8.2. As the competitive industry, not just the firm in question, moves toward long-run equilibrium, the firm will be forced to operate at what level of output?
A) 22
B) 34
C) 38.
D) 50
E) 64
D
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In Table 13-1, if the required reserve ratio is 10 percent, what will happen to the money supply? Use the oversimplified money multiplier in your calculations
a. The money supply will decrease by $100 million. b. The money supply will decrease by $10 million. c. The money supply will not change. d. The money supply will increase by $10 million. e. The money supply will increase by $100 million.
The law of diminishing marginal product holds that as a variable input increases while other inputs are fixed, ______.
a. eventually the fixed inputs will increase at a rate equal to or below the variable increases b. labor demanded will be high at both very low and very high outputs creating a U- shaped curve c. the marginal revenue product will eventually cause the labor demand curve to turn upward d. at some point the increase will lose its effectiveness, and additions to output will decline
The rights to own private property and to exchange goods with minimal government interference is
A. economic freedom. B. capital freedom. C. political freedom. D. population freedom.
Someone has a comparative advantage in producing a good if she can produce that good
A. in greater quantities. B. using more capital and less labor. C. at a lower opportunity cost. D. using more labor and less capital.