If a cartel firm is producing a quantity at which the marginal revenue is $4 and the marginal cost is $4, the firm ________.
A) is producing less than the agreed upon quantity
B) is producing the agreed upon quantity
C) has erected a barrier to entry
D) has acted in self-interest
D) has acted in self-interest
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An unexpected shift to a more expansionary monetary policy will generally
a. stimulate aggregate demand and real output as soon as the policy is instituted. b. exert its primary impact on aggregate demand and real output 6 to 15 months in the future. c. cause inflation in the short run, but expand real output in the long run. d. increase real interest rates in the short run.
If the marginal utilities are constant for travel and food and the marginal utility per dollar of travel is 50 and the marginal utility per dollar of food is 30:
A. we can gain 20 units of net utility by spending one more dollar on food and one less dollar on travel. B. we can gain 20 units of net utility by spending one less dollar on food and one more dollar on travel. C. the total utility of food and travel is 80. D. we can gain 30 units of net utility by spending one less dollar on food and one more dollar on travel.
If a $6 billion economy is growing at a real rate of 5 percent a year and there is no inflation, what must the government do to maintain a constant debt-to-GDP ratio?
A. Run a deficit of $600 million B. Run a deficit of $300 million C. Run a surplus of $300 million D. Balance the budget
A production function shows the greatest amount that a firm will produce given the amount of labor input.
Answer the following statement true (T) or false (F)