If government policy makers were worried about the inflationary potential of the economy, which of the following would be a correct fiscal policy change?
a. Decrease consumption taxes
b. Decrease government purchases of goods and services.
c. Increase government purchases.
d. None of the above.
b
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Periodic payments of net earnings to shareholders are known as
A) capital gains. B) dividends. C) profits. D) interest.
Suppose a firm receives $975 for a discount bond with a face value of $1000 to be repaid in one year. What is the amount of interest on the bond? What is the interest rate on the bond? Report a percentage with two decimal places
What will be an ideal response?
A firm seeking to maximize economic profits should produce at the output at which
A) total revenue equals total cost. B) marginal revenue equals marginal cost. C) average revenue equals average cost. D) marginal revenue equals average revenue.
If a firm is a price taker, its marginal revenue is:
a. equal to market price. b. less than market price. c. greater than market price. d. a multiple of market price that may be either greater than or less than one.