Suppose the current level of output and the interest rate are such that the economy is operating on neither the IS nor LM curve. Which of the following is true for this economy?
A) Production does not equal demand.
B) The money supply does not equal money demand.
C) The quantity supplied of bonds does not equal the quantity demanded of bonds.
D) Financial markets are not in equilibrium.
E) all of the above
E
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The marginal revenue curve for a perfectly competitive firm
A) is the same as its demand curve. B) is perfectly inelastic. C) is downward-sloping. D) is the same as its marginal cost curve.
Which of the following is assumed in virtually every economic model?
a. Inefficiency exists in the economy. b. Decision makers operate in the face of unlimited resources. c. All decision makers face constraints. d. Normative economic statements are derived from mathematical equations. e. Positive statements are derived from normative statements.
Accounting profit is usually smaller than economic profit
a. True b. False Indicate whether the statement is true or false
The poor are those who fall too far behind the average income. This refers to the ____ definition of poverty.
A. marginal B. absolute C. relative D. threshold