A perfectly competitive firm is maximizing profits in the short run. This implies that the firm is earning the most economic profits possible, which
A) must be positive.
B) must be either zero or positive.
C) can be positive, negative, or zero.
D) exist at the point at which price equals total cost.
C
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Inequality is often the result of higher levels of work and productivity
a. True b. False
Its Consumer Advisory Committee conducts open market operations of the Fed
Indicate whether the statement is true or false
A laissez faire policy approach during a recession would advocate
A. Increasing AS by funding programs that improve worker skills. B. Increasing AD by increasing government spending. C. Noninterference by the government. D. Increasing both AD and AS.
Which of the following is responsible for buying and selling government securities to influence reserves in the banking system?
A. Twelve Federal Reserve banks. B. The Board of Governors of the Federal Reserve. C. The Federal Open Market Committee. D. The executive branch of government.