Suppose an entrepreneur commits to a production schedule but underestimates the market price for his products. What will be true about his current level of production?
a. Losses will be very high.
b. Marginal cost will be less than marginal revenue.
c. Marginal cost will be more than marginal revenue.
d. Average total cost will exceed price.
e. Total fixed costs will be too low.
B
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In 1981-1983, the world economy suffered a steep recession. Naturally, the fall in industrial countries' aggregate demand had a direct negative impact on the developing countries
What other mechanism was an even more important contributor to this event? A) the immediate steep inflation that followed the recession B) the dollar's sharp depreciation in the foreign exchange market C) the increase in primary commodity prices, increasing terms of trade in many poor countries D) the collapse in primary commodity prices and the immediate, large rise in the interest burden that debtors had to pay E) the influx of defaulting credit
If you won the state lottery and were guaranteed a monthly income of $5000 for life then ________ would argue that your ________ income has increased
A) Friedman; permanent B) Friedman; transitory C) Modigliani; transitory D) Modigliani; permanent
Before discovering that the short-run Phillips curve does not show the true long-run situation, policy makers were successful in trying to bring the economy to the zero-inflation, zero-unemployment point on the short-run curve
a. True b. False Indicate whether the statement is true or false
The second largest source of income for the federal budget is:
a. personal income taxes. b. corporate income taxes. c. payroll taxes. d. inheritance taxes.