A firm is currently producing 100 units of output per day. The manager reports to the owner that producing the 100th unit costs the firm $5 . The firm can sell the unit for $6 . The firm should produce more than 100 units in order to maximize its profits (or minimize its losses)
a. True
b. False
Indicate whether the statement is true or false
True
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A credit union is an example of a financial intermediary
a. True b. False
Within the framework of the AD/AS model, in the long run, output
a. will exceed the economy's long-run capacity. b. will be less than the economy's long-run capacity. c. will converge toward the economy's long-run capacity. d. must equal approximately 95 percent of the economy's long-run capacity.
Which of the following is not a characteristic of a perfectly competitive market?
a. There are many buyers and sellers. b. Firms can freely enter and exit the market. c. Many firms have market power. d. Firms sell very similar products.
Which of the following shows a contrast between Economist A, who is concerned with individual liberty, and Economist B, who is concerned with an unfair distribution of power?
a. Economist A wants more government programs; Economist B wants to hire fewer government employees. b. Economist A wants more government programs; Economist B want less government involvement. c. Economist A wants to hire more government employees; Economist B want to lower taxes. d. Economist A wants less government involvement; Economist B wants more government programs.