Marginal revenue equals the change in total revenue that is earned by selling one more unit of output
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose that the sub sandwich business is a competitive, constant-cost industry. An increase in demand for sub sandwiches, will, in the long-run lead to
a. an increase in price and industry output, but no increase in the output of existing firms. b. no increase in price, no increase in the output of existing firms but an increase in industry output because of new firms. c. no increase in price and an increase in industry output as each existing firm produces more. d. no changes in price, output of existing firms or the number of firms in the industry.
A resident of the U.S. owns a factory in China. Earnings from this factory would be considered as ________
A) exports B) investment income C) transfer income D) imports
The new growth theory states that
A) it is impossible to replicate production activities. B) technological advances are the result of discoveries and choices. C) the subsistence level income leads to technological advances. D) technological advances are the responsibility of the government. E) technological advances are the result of random chance.
In the above figure, is the Fed likely to be afraid that inflation will occur or that a recession will occur? Discuss the appropriate monetary policy that should be made to restore the economy to potential GDP
What will be an ideal response?