Suppose a perfectly competitive firm is currently selling 200 units at $5 per unit and has a marginal cost of $2. The firm can maximize profit by
a. decreasing output
b. increasing price
c. increasing output
d. decreasing price
Answer: c. increasing output
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In cost-effectiveness analysis, constant cost studies:
a. are rarely used b. attempt to specify the output which may be achieved from a number of alternative programs, assuming all are funded at the same level c. are useless because they fail to adequately evaluate program benefits d. try to find the least expensive way of achieving a certain objective e. none of the above
Among young Americans aged 19 to 25, _____% have no health insurance
a. 11% b. 17% c. 22% d. 26%
The money multiplier is calculated as 1 / reserve requirement multiplied by the:
A. change in excess reserves following a change in the money supply. B. change in deposits following a change in government expenditure. C. change in total reserves following a change in the money supply.
The Federal Reserve System was NOT
A. established with the 1913 passage of the Federal Reserve Act. B. the first attempt to have a United States central bank. C. intended to act as a "lender of last resort." D. designed to lend money to inherently sound banks so that they can survive financial panics.