The Smoot-Hawley Tariff Act of 1930 is thought to have contributed to the severity of the 1930s depression because of the rise in tariff rates and the consequential drop in private consumption, savings and investment
Indicate whether the statement is true or false
True
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Allocative efficiency is achieved when firms produce goods and services
A) that consumers value most. B) at a marginal cost of zero. C) at the lowest possible cost. D) at the lowest opportunity cost.
Suppose there was a banking crisis. The money supply would shrink by the greatest amount if the public ________ their currency—deposit ratio and the banks ________ their reserve—deposit ratio
A) decreased; decreased B) decreased; increased C) increased; decreased D) increased; increased
When long-run average total cost decreases as output increases, a firm experiences
a. increasing average fixed cost b. decreasing total cost c. economies of scale d. diseconomies of scale e. constant returns to scale
The price charged by a monopoly firm is the market price (demand curve) at which:
a. MR = MC, and usually P > MR and P > MC. b. the firm is just breaking even. c. the firm makes a normal profit. d. the firm can export its products.