If, for the last bushel of apples produced and sold by an apple farm marginal revenue exceeds marginal cost, then in producing that bushel the farm
A) added an equal amount to both total revenue and total cost.
B) added more to total cost than it added to total revenue.
C) maximized its profits or minimized its losses.
D) added more to total revenue than it added to total cost.
D
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In a long-run perfectly competitive equilibrium,
a. marginal cost and marginal revenue are the greatest distance apart b. barriers to entry are established by entrenched firms c. the typical firm will earn an economic profit d. average total cost is rising e. price and marginal cost are equal to minimum short-run and long-run average total cost
Government can raise GDP by $1,000 billion by:
a. raising government purchases b. reducing taxes c. increasing transfer payments d. All of the above.
If the Congress passes legislation to raise taxes to control demand-pull inflation, then this would be an example of a(n):
A. expansionary fiscal policy. B. nondiscretionary fiscal policy. C. contractionary fiscal policy. D. political business cycle.
If the MPS is 0.4, the government spending multiplier is
A. 0.6. B. 2.5. C. 4. D. 5.