Maximizing revenue maximizes profits.
Answer the following statement true (T) or false (F)
False
Total costs increase as output expands and at some point at an increasing rate. Therefore, maximizing revenue may not necessarily maximize profit.
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If Federal Reserve notes and coins are $765 billion, and banks' reserves at the Fed are $8 billion, the gold stock is $11 billion, and the Fed owns $725 billion of government securities, what does the monetary base equal?
A) $765 billion B) $773 billion C) $776 billion D) $744 billion E) $1,509 billion
Which of the following statements best describes the rational expectations hypothesis?
A) Individuals will not enter into long-term agreements unless they are certain about the payments they will receive. B) It is likely that individuals will consistently make errors. C) Individuals will make random errors, independent of previous errors. D) It is reasonable to expect individuals to consistently underestimate the level of inflation.
If a corporation pays a dividend, which group receives priority in receiving the dividend?
A) bond holders B) holders of common stock C) holders of preferred stock D) dividends are evenly divided by holders of common and preferred stock
In a market economy, _____ own(s) all the basic resources or factors of production
a. households b. the federal government c. the Federal Reserve bank d. the local government e. business firms