A perfectly competitive firm in the short-run maximizes its profit by producing the output where:
a. marginal cost equals price.
b. marginal cost equals marginal revenue.
c. total revenue minus total cost is at a maximum.
d. all of these.
d
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Leakages include
A. Exports. B. Government spending. C. Inventories. D. Business saving.
The agency that deals with issues of "unfair and deceptive acts or practices in commerce" is the
A) Federal Trade Commission. B) Federal Products Commission. C) Federal Consumer Protection Agency. D) Federal Advertising Commission.
Agriculture, clothing, and textiles are singled out for treatment in the chapter because
A) they tend to be the most highly protected sectors of industrial economies. B) they tend to be the most-protected sectors internationally. C) the policies of high-income nations in these sectors may have beneficial effects in low-income countries. D) they are more important to job creation than other sectors.
In 2001 a combination of tax cuts and increased defense spending did not have the same inflationary effect as the similar policy in the 1960s. Explain the difference.
What will be an ideal response?