Firms in perfectly competitive markets who wish to maximize profits should produce:
A. more as long as marginal cost is greater than marginal revenue.
B. less as long as marginal cost is less than marginal revenue.
C. at the level where marginal cost equals marginal revenue.
D. All of these are true.
C. at the level where marginal cost equals marginal revenue.
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Which of the following people would be classified as employed in the Current Population Survey?
A) Rich, who is working 20 hours a week but wants a full-time job B) Misty, who just quit her job to return full time to school C) April, who just graduated from college and is looking for work D) Jason, who was laid off from work less than 6 months ago but who has stopped looking for work E) Laura, who is unpaid but is working 10 hours a week in the family business she and her husband run
When faced with a marginal effluent fee (MEF), each polluting source will
a. abate up to the point where its total abatement cost (TAC) equals the MEF b. abate nothing and pay the MEF on all units of pollution released c. clean up pollution as long as its marginal abatement cost is lower than the MEF d. reduce its effluents to zero to avoid paying the effluent fee
If there is a political business cycle and the Federal Reserve supports the incumbent, then we should expect that prior to elections the Fed would
a. raise interest rates to shift aggregate demand left. b. raise interest rates to shift aggregate demand right. c. reduce interest rates to shift aggregate demand left. d. reduce interest rates to shift aggregate demand right.
Which of the following tax cuts lowered the top marginal tax rate to 28 percent?
A. The Kemp-Roth Tax Cut of 1981 B. The Tax Reform Act of 1986 C. The Tax Cut of 1993 D. The Tax Cut of 2001 E. The Tax Cut of 2003