The Federal Reserve cannot affect the price level directly; therefore, the Fed typically uses the following as its policy target:
A. Interest rates
B. Government expenditures
C. Inflation
A. Interest rates
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Rationing goods on the basis of price is a direct result of
A) scarcity. B) queuing. C) government intervention. D) the profit motive.
Which of the following is true of per capita GDP and GDP per hour worked?
a. Per capita GDP is smaller than GDP per hour worked b. Per capita GDP is larger than GDP per hour worked. c. Per capita GDP is a common measure of estimating U.S. productivity in business sectors. d. GDP per hour worked shows the average quantity of available goods and services per person.
The monopolist's marginal revenue curve is downward sloping because:
a. the monopolist must lower its price in order to sell more. b. it operates in the range where ATC is downward sloping. c. it operates in the range where MC is downward sloping. d. its total revenue declines as it sells more.
Perfectly competitive firms maximize their profit by producing the output level where P = MR = AVC.
Answer the following statement true (T) or false (F)