What is the primary focus of the neoclassical theory?
a. The intermediate run
b. The short run
c. The long run
d. Both the short and the long run
c. The long run
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Which of the following is a reason why the growth rates of low-income countries can be higher than those of high-income countries?
a. Lower-income countries can observe the experience of those countries that have grown more quickly and can learn from it. b. Lower-income countries have a comparative advantage in the production of labor-intensive goods, which have higher terms of trade than capital-intensive goods. c. Lower-income countries have an abundant supply of rich natural resources. d. Lower-income countries can produce goods more cheaply than high-income countries as the average wage rate in low-income countries is lower than that in high-income countries.
It is illegal for business to price discriminate when selling goods to other businesses unless
a. Price discounts are cost-justified b. Discounts are offered to meet competitors' price c. Both a and b d. It is not illegal for businesses to price discriminate
The tools of monetary policy:
A. are limited in number and never change. B. continue to evolve as the economy changes. C. are all equally effective since they all do basically the same thing. D. have been used in the same basic ways for a hundred years.
A competitive firm operating in the short run is producing at the output level at which ATC is at a minimum. If ATC = $8 and MR = $9, in order to maximize profits (or minimize losses), this firm should:
a. reduce output. b. increase output. Correct c. shut down. d. do nothing; the firm is already maximizing profits.