If price is set equal to marginal cost when marginal cost is below ATC, the firm will receive a profit greater than profit earned when marginal cost is above ATC
Indicate whether the statement is true or false
F
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According to the search model, the marginal benefit of acquiring information about a product
a. is greater for a doctor than a nurse's aide b. is the same for high-income consumers as for low-income consumers c. is greater for expensive items than for cheap items d. is greater for cheap items than for expensive items e. increases as more information is acquired
Economists who asset that the AS curve is vertical believe that changes in Real GDP originate only on the _____________of the economy; so government policy that is intended to impact the ____________________ of the economy will change only ______________, not ________________
A) demand side; supply side; Real GDP; prices B) demand side; supply side; prices; Real GDP C) supply side; demand side; Real GDP; prices D) supply side; demand side; prices; Real GDP
Politicians will usually
A) prefer to discuss means rather than ends. B) prefer to discuss the issues in specific terms rather than in general terms. C) not like to be perceived as either an extreme "right-winger" or an extreme "left-winger." D) refer to their opponents as "middle-of-the-roaders."
In the traditional Keynesian model, an increase in government spending raises total planned real expenditures by more than the original increase in government spending because
A) of the crowding-out effect on consumption spending. B) consumption spending is not related to real GDP. C) consumption spending depends positively on real GDP. D) consumption spending depends negatively on real GDP.