At any quantity of output above the intersection of the marginal revenue and marginal cost curves:
A. MR is lower than MC.
B. profits are being maximized.
C. ATC equal to AVC.
D. MR is higher than MC.
A. MR is lower than MC.
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What will be an ideal response?
Inflation is an overall:
A. rise in prices in the economy. B. decline in prices in the economy. C. rise in prices in the economy, excluding those with historically volatile price changes. D. decline in prices in the economy, excluding those with historically volatile price changes.
The use of deposit sweeping allows banks to:
A. reduce the amount of required reserves they must hold. B. pay higher rates of interest than are allowed by law. C. pay less for FDIC insurance. D. weed out less profitable deposits.
Exhibit 4-8 Demand and supply curves
In Exhibit 4-8, a movement from A to B is best explained by:
A. an increase in income and in the number of suppliers. B. an increase in the price of other goods. C. an increase in the population. D. a decrease in income if X is a normal good and an improvement in the technology used to produce the good.