A firm enjoys a positive economic profit when:
a. the demand curve touches the average cost curve at the profit-maximizing level of output.
b. the marginal revenue curve has a negative intercept on the ordinate axis.
c. the average revenue curve lies below the average cost curve at the profit-maximizing level of output.
d. the marginal cost is declining at the profit-maximizing level of output.
e. the average revenue curve lies above the average cost curve at the profit-maximizing level of output.
e
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Game theory is most useful for analyzing
A) perfect competition. B) monopolistic competition. C) oligopoly. D) monopoly.
The IMF's approach to structural adjustment usually
a. placed priority on growth-related investments b. eased conditions by providing subsidies for goods consumed by the poor c. aimed to switch production from goods consumed domestically to goods intended for export d. focused on governments switching expenditure from defense spending to job creation e. all of the above
The presence of deposit insurance in the savings and loan industry
A) created an adverse selection problem because good S&Ls were forced out of the market. B) solved its own adverse selection problem because it pushed badly managed S&Ls out of the market. C) contributed to "depositor moral hazard" but did not involve a moral hazard problem with owners. D) contributed to "moral hazard by owners" but did not involve a moral hazard problem with depositors. E) contributed to both "depositor moral hazard" and "moral hazard by owners."
Which of the following is downward-sloping?
a. both the long-run Phillips curve and the short-run Phillips curve b. neither the long-run Phillips curve nor the short-run Phillips curve c. the long-run Phillips curve, but not the short-run Phillips curve d. the short-run Phillips curve, but not the long-run Phillips curve