A rational seller will sell another unit of output:
A. as long as the quantity demanded is greater than zero.
B. if the cost of making another unit is less than the revenue gained from selling another unit.
C. whenever the seller is earning a profit.
D. if the seller can charge more than the equilibrium price.
Answer: B
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Indicate whether the statement is true or false
The price index was 120 in 2006 and 127.2 in 2007. What was the inflation rate?
a. 5.7 percent b. 6.0 percent c. 7.2 percent d. 27.2 percent
Which of the following institutions is responsible for supervising the banking system of the United States?
A. The Federal Reserve System B. The Open Market Committee C. The U.S. Treasury D. The Federal Deposit Insurance Corporation
When the economy is experiencing inflation, an economist who follows the functional finance theorem is most likely to suggest that the government should:
A. run a balanced budget. B. run a deficit. C. do nothing. D. run a surplus.