An increase in the price a firm receives for its output will lead the firm to:
A. leave output unchanged and earn greater profits.
B. reduce output.
C. expand output.
D. leave output unchanged and earn smaller losses.
Answer: C
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Describe in general terms four or five characteristics of less-developed countries
Which of the following shifts the short-run aggregate supply curve to the right?
a. an increase in the money supply b. an increase in the price level c. a decrease in the expected price level d. All of the above are correct.
The accompanying graph shows the cost curves for Moe's mushroom gathering business, which is perfectly competitive.
If mushrooms sell for $40 per bushel, and Moe chooses the profit-maximizing quantity, he will:
A. earn positive profit. B. earn negative profit (a loss). C. earn zero profit. D. shut down.
All of the following statements about open market operations are true EXCEPT:
A) They are used by the Federal Reserve to change the Federal Funds Rate B) They are used by the Federal Reserve to change the discount rate C) They are used by the Federal Reserve to buy and sell mutual funds D) They are used by the Federal Reserve to transact with securities dealers E) They are probably the most influential tool the Federal Reserve has to alter money supply