The marginal cost curve is a competitive firm's supply curve; it shows how many units of output a firm will be willing to sell at different prices.
Answer the following statement true (T) or false (F)
True
Since a firm maximizes profit by setting price equal to marginal cost, it will use its marginal cost curve to determine what quantity of output to supply at each price.
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Which of the following correctly identifies a difference between land and capital?
A) Land can be owned or rented by a firm, whereas capital cannot be owned. B) Capital can be owned or rented by a firm, whereas land cannot be owned. C) Land is created, whereas capital is a naturally occurring resource. D) Capital is created, whereas land is a naturally occurring resource.
Economists believe that the same explanation for the rapid growth of costs applies to services, theatrical performances and restaurant meals.
Answer the following statement true (T) or false (F)
_________________________ was an international monetary system in which the U.S. dollar was valued in gold and other exchange rates were pegged to the dollar.
a. The gold standard b. The flexible exchange rate system c. The Bretton Woods System d. none of the above