________ is maximized in a competitive market when marginal benefit equals marginal cost
A) Deadweight loss
B) Marginal profit
C) Economic surplus
D) Selling price
Answer: C
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In the short run, firms expand their production when the price level rises because
A) the money wage rate remains constant so the higher prices for their products makes it profitable for firms to expand production. B) each firm must keep its production up to the level of its rivals, and some firms will expand production as the price level increases. C) the higher prices allow the firm to hire more workers by offering higher wages, thereby increasing productivity and profits. D) firms can increase their profits by increasing their maintenance.
Accountants consider depreciation allowance as ________ and ________ it from the firm's operating profit before calculating the tax.
A) profit; add B) a cost; subtract C) profit; subtract D) a cost; add
The Lorenz curve and the Gini coefficient are similar in that both
a. are numerical measurements b. illustrate dispersions of income throughout an economy c. represent after tax incomes d. are abstract models of the real world but there are no data allowing us to apply it to the real world e. compare the levels of incomes earned in different countries
The federal government deficit or surplus
A. is not affected by the level of GDP. B. is not affected by discretionary fiscal policy. C. may be more a symptom of economic distress than a result of intentional fiscal policy. D. should be balanced at all times to prevent business cycles.