In a perfectly competitive market, the average revenue curve of a firm is
A. the same as its total revenue curve.
B. the same its economic profits.
C. the difference between its total revenue curve and its marginal revenue curve.
D. the same as its demand curve.
Answer: D
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Hughes and Cain (2011) give some credit to which of the following factors for the 1860–1910 increase in the number of people employed, shorter work days and higher real incomes?
(a) A decrease in the number of immigrants (b) A closed economy with no imports coming into or exports going out of the U.S. (c) Mechanical power and capital accumulation (d) All of the above
When it comes to macro-policy, most economists now agree that
a. policy should be constantly changing in response to business cycle conditions. b. policy changes should exert stimulus during inflationary booms and restraint during downturns. c. given our ability to forecast economic conditions, policy changes easily can be implemented in a timely manner. d. policy changes are difficult to time correctly, and therefore constant shifts in policy are likely to be a source of economic instability.
The biggest disadvantage of a fixed exchange rate is the
A) increased probability of high inflation. B) tradeoff between supporting the exchange rate and adjusting the trade balance. C) tradeoff between supporting the exchange rate and maintaining economic growth. D) tradeoff between supporting the exchange rate and maintaining a balanced budget.
Who bears the costs of a program to control rents at a maximum level?
A) landlords or owners of housing units B) consumers who face difficulty moving to a more suitable apartment C) homeless who cannot find rental units D) all of these