If real output grows at 3 percent per year and the inflation rate is 3 percent per year then government debt can grow by 6 percent per year and not increase the ratio of debt to income
a. True
b. False
Indicate whether the statement is true or false
True
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If the optimal forecast of the return on a security exceeds the equilibrium return, then
A) the market is inefficient. B) no unexploited profit opportunities exist. C) the market is in equilibrium. D) the market is myopic.
If a good sells for $10 domestically and the same good sells for $7 abroad, then this firm is engaging in
A) marginal cost selling. B) price discrimination. C) price differentiation. D) dumping.
In a market where all goods are perfect substitutes for each other,
a. the price elasticity of demand is 1.0 for all goods b. the market is perfectly competitive c. only one producer dominates d. only a few firms can operate e. brand loyalty is high
For a monopoly, the socially efficient level of output occurs where
a. marginal revenue equals marginal cost. b. average revenue equals marginal cost. c. marginal revenue equals average total cost. d. average revenue equals average total cost.