The intersection of a firm's marginal revenue and marginal cost curves determines the level of output at which
a. total revenue is equal to variable cost.
b. total revenue is equal to fixed cost.
c. total revenue is equal to total cost.
d. profit is maximized.
D
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Higher rates of employment and substantial per capital output gains seem to occur when the real economic growth rate
a. is less than 1 percent. b. is less than 2 percent. c. exceeds 3 percent. d. is between 1.5 and 2 percent.
Which of the following approaches should the Fed use if it experiences large lags and mistakes in monetary policy?
A. Discretionary policy B. An eclectic approach C.Fixed rules D. Fiscal policy
A good that provides external benefits to society has:
A. too few resources devoted to its production. B. too many resources devoted to its production. C. the optimal resources devoted to its production. D. not provided profits to producers of the good.
Assume that both the United States and Germany produce beef and computers. The U.S. can produce 200 computers or 1,000 pounds of beef per day. Germany can produce 500 computers or 250 pounds of beef per day. What is the opportunity cost of beef and computer chips in each country? In which good does each country have a comparative advantage? What is the range for mutually beneficial trade in
computers? What will be an ideal response?