At the socially optimum quantity of production, price equals:
A. average total cost.
B. marginal revenue.
C. average variable cost.
D. marginal cost.
Answer: D
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A good example of a policy to increase an economy's saving rate is ________
A) to reduce poverty B) to increase the economic growth rate C) to increase government spending D) to reduce interest rates E) to increase sales taxes
Along the long-run Phillips curve, the economy is at an unemployment level that corresponds to an output level lower than the potential output level
a. True b. False Indicate whether the statement is true or false
Diversification makes sense as a business strategy if it
A) creates job security for workers. B) creates value for stockholders. C) creates accounting profits. D) creates greater market share.
Which of the following would cause prices to rise and real GDP to fall in the short run?
a. an increase in the expected price level. b. an increase in the capital stock. c. an increase in the money supply. d. an increase in taxes.