Productivity is
A. Output per unit of input.
B. The inverse of cost efficiency.
C. The increment of output produced when one more unit of an input is employed in the production process.
D. The same as marginal revenue.
Answer: A
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Refer to Figure 6-10. A perfectly elastic supply curve is shown in
A) Panel A. B) Panel B. C) Panel C. D) Panel D.
The long-run aggregate supply curve is:
A. downward sloping. B. horizontal. C. vertical. D. upward sloping.
Even though firms in competitive price-searcher markets do not produce at minimum ATC, competitive price-searcher markets may still be consistent with economic efficiency because
a. strict government regulations force the firms in these markets to keep their costs low. b. they provide consumers with a greater diversity of products. c. they encourage more advertising in both price-searcher and price-taker markets. d. special legal protections for price searchers make it possible for them to more efficiently use resources.
When the economy is at full employment and inflation is present, the government could create a surplus budget by cutting its own spending and raising taxes. The Fed would be expected to:
A. reduce the required reserve ratio, increase the discount rate, and buy securities on the open market. B. reduce the required reserve ratio, reduce the discount rate, and sell securities on the open market. C. reduce the required reserve ratio, reduce the discount rate, and buy securities on the open market. D. increase the required reserve ratio, increase the discount rate, and sell securities on the open market.