For a firm to be economically efficient from society's point of view, it should produce to the point at which
A. marginal cost equals price.
B. average total cost equals price.
C. marginal cost equals marginal revenue.
D. marginal cost equals average total cost.
Answer: A
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In the figure above, the lowest 20 percent of all households receive ________ percent of all income, the next lowest 20 percent receive ________ percent of all income and the richest 20 percent receive ________ percent of all income
A) 20; 20; 20 B) 20; 40; 100 C) 10; 20; 40 D) 10; 10; 40
If the marginal propensity to save (MPS) is 0.50, the value of the spending multiplier is:
a. 1. b. 2. c. 4. d. 9.
In the 1990s, foreign direct investment had become the most important source of funds for developing countries
a. True b. False Indicate whether the statement is true or false
Draw a graph of the monopolistic competitor in the long run in the graph below.
