It is in society’s best interest that the MC of the last unit produced of a good is equal to its MU.
Answer the following statement true (T) or false (F)
True
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Refer to Scenario 2.2. Under what circumstances will the equilibrium level of output of dental care remain the same?
A) If supply shifts more than demand. B) If demand shifts more than supply. C) If both demand and supply shift by the same magnitude. D) If supply and demand shift in the same direction.
What does the quantity theory of money tell us? That
a. the velocity of money is highly variable b. the money supply directly affects real GDP c. the money supply inversely affects velocity d. real GDP increases as the price level increases e. P = MV/Q
Predatory pricing:
A. is when a firm intimidates others to maintain the high prices the largest firms set. B. is an aggressive business move to maintain market power. C. was used by DeBeers to maintain control over the diamond market. D. All of these statements are true.
Almost all recessions identified by the NBER are characterized by:
A. durations exceeding two years. B. declining real GDP. C. higher rates of inflation. D. higher interest rates.