If a firm is using a resource hired in a perfectly competitive market, and if the marginal resource cost is less than its marginal revenue product,
a. more of the resource should be used.
b. less of the resource should be used.
c. the firm should pay a lower price for the resource.
d. the firm should pay a higher price for the resource.
e. the firm is using the optimal amount of the resource.
A
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National income:
a. is included in gross private domestic investment. b. includes the sum of all payments made to resource owners for the use of their resources. c. includes depreciation. d. is often measured as C + I + G + (X ? M).
When the IMF provides loans to developing countries, it often requires these countries to adopt:
A. a contractionary fiscal policy and an expansionary monetary policy. B. contractionary monetary and fiscal policies. C. expansionary monetary and fiscal policies. D. a contractionary monetary policy and an expansionary fiscal policy.
Activities designed to convert resources into goods and services is known as
A) supply. B) consumption. C) production. D) scarcity.
An investor wishing to minimize the risk of capital losses as a result of changing interest rates should avoid
A) U.S. savings bonds. B) U.S. Treasury notes. C) U.S. Treasury bills. D) U.S. Treasury bonds.