The profit maximizing rule P = MC applies to:
A. both perfectly competitive firms and imperfectly competitive firms.
B. all firms.
C. perfectly competitive firms only.
D. monopolists only.
Answer: C
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An increase in frictional unemployment will
A) shift the long-run Phillips curve to the right. B) shift the short-run Phillips curve to the right. C) increase the natural rate of unemployment. D) All of the above are correct. E) None of the above is correct.
In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, then an open market ________ the supply of reserves, raising the federal funds interest rate, everything else held constant
A) sale decreases B) sale increases C) purchase increases D) purchase decreases
Which of the following would not be considered a "leisure" activity by economists?
A. Cleaning the bathroom floor B. Making a work call. C. Making dinner D. Going skiing
Which of the following goods is the most liquid?
A. Antique sword from WWI B. House C. Saving deposit D. Painting by Monet