Economists define efficiency as
a. output maximization.
b. the absence of waste.
c. input maximization.
d. the presence of surplus.
b
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Deposits are examples of a bank's
A) liabilities. B) assets. C) net worth. D) balance sheet.
The nominal interest rate is equal to the:
a. Real risk-free interest rate plus expected inflation. b. Real interest rate plus risk premium plus tax/subsidy premium plus maturity premium. c. Real interest rate plus risk premium plus tax/subsidy premium plus maturity premium plus expected inflation. d. Real interest rate plus expected inflation. e. None of the above.
Refer to the graph shown. In equilibrium, producer surplus is equal to:
A. 600. B. 1,200. C. 2,000. D. 1,400.
Where the monopolistically competitive firm in Figure 8.5 produces, it will:
A. make a positive economic profit. B. suffer a loss. C. make zero economic profit. D. make a negative economic profit.