A firm in a perfectly competitive market can maximize its profits by producing:
A. any level beyond where marginal cost equals marginal revenue.
B. any level below where marginal cost equals marginal revenue.
C. slightly below its maximal capacity.
D. the level of output where marginal cost equals marginal revenue.
Answer: D
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Coins and dollar bills are money in the form of
a. barter b. currency c. value d. capital e. specie
The demand curve for any input is the downward-sloping portion of its marginal revenue product curve.
Answer the following statement true (T) or false (F)
A government using fiscal policy in an attempt to stimulate the economy would do which of the following?
A) Raise taxes. B)raise government spending. C) Lower interest rates. D) Raise interest rates.
Which of the following describes the reason why scarcity exists?
A. Governments make bad economic decisions. B. The gap between the rich and the poor is too wide. C. Wants exceed the resources available to satisfy them. D. There is too much unemployment.