Economic efficiency is indicated by
A) P = AVC.
B) MR = MC.
C) P = MR.
D) P = MC.
D
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What are the short-run economic effects when U.S. firms substitute labor outside of the U.S. for labor inside the U.S.?
A) The wage rate in the U.S. will remain the same, and the wage rate in the foreign country will decrease. B) The wage rate in the U.S. will increase, and the wage rate in the foreign country will decrease. C) The wage rate in the U.S. will decrease, and the wage rate in the foreign country will decrease. D) The wage rate in the U.S. will decrease, and the wage rate in the foreign country will increase.
Fiscal policy options can take the form of
A) Automatic fiscal policy instruments. B) Open market operations. C) Nuclear fiscal policy instruments. D) All of the above.
Which of the following statements is TRUE about the relationship among external, internal and social costs?
A) External cost is the difference between social and internal costs. B) Internal cost is the sum of social and external costs. C) Social cost is the difference between internal and external costs. D) none of the above
A low interest rate discourages planned investment.
Answer the following statement true (T) or false (F)