Suppose the perfectly competitive equilibrium occurs such that too many units of the good are produced. This is an example of
A) marginal cost pricing.
B) market failure.
C) firms have not yet exited the industry.
D) greedy business people behaving in an inappropriate manner.
B
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In the short run, the firm makes zero economic profit when the price is ________ minimum average total cost, makes an economic profit when the price is ________ minimum average total cost, and incurs an economic loss when the price is ________
minimum average total cost. A) equal to; higher than; lower than B) equal to; lower than; higher than C) higher than; equal to; lower than D) lower than; equal to; higher than
When the interest rate falls,
a. the opportunity cost of holding money rises. b. people shift out of holding interest-yielding bonds into holding money. c. the quantity of money people will hold decreases. d. investment spending decreases. e. real GDP will decrease.
When a firm is hiring the optimal amount of labor, the change in total labor cost divided by the change in labor employed is equal to
a. one b. the wage rate c. the number of firms employing labor d. the change in total revenue e. the price of the good
In November 2008, the leaders of the ________ met in an emergency meeting in Washington to coordinate their responses in terms of both macroeconomic and financial policies
A) G20 B) G7 C) OECD countries D) G8