It is ________ for a corn producer in a perfectly competitive corn industry to make excess profits because entry into the corn industry is free.
A. difficult
B. likely
C. very easy
D. expected
Answer: A
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The table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities.Number ofEmployeesTotal DonationsAverage DonationsTotal Labor CostsAverage Labor Costs1$30,000 $8,0002$42,426 $17,000 3 $17,321$27,000 4$60,000 $9,5005 $13,416$50,000 The Chair of the Economics Department at State U says that fundraising employees should be hired as long as their marginal benefit exceeds their marginal cost. If the University follows this advice, then ________ employee(s) will hired, and the net benefit (total donations minus total labor costs) will be ________.
A. 1; $22,000 B. 2; $25,426 C. 2; $3,476 D. 3; $25,426
A $10 million increase in government spending has the same economic impact as a $10 million tax cut
a. True b. False Indicate whether the statement is true or false
A monopolist is a price maker.
Answer the following statement true (T) or false (F)
In which of the following situations would the Fed conduct contractionary monetary policy?
A) The Fed believes that aggregate demand was growing too slowly to keep up with potential GDP. B) The Fed fears that unemployment is climbing above the natural rate. C) The Fed is concerned that aggregate demand would continue to exceed the growth in potential GDP. D) The Fed is worried that deflation will become a problem.