When a firm in a price-taker industry is in long-run equilibrium, the market price equals
a. marginal cost but may be greater or less than average total cost.
b. both average total cost and marginal cost.
c. average total cost but may be greater or less than marginal cost.
d. marginal revenue but may be greater or less than both average total cost and marginal cost.
B
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Successful adjustment to external imbalance is likely to involve
a. expenditure-reducing policies b. expenditure-switching policies c. import compression d. devaluation of the national currency e. all of the above
If variables with a multivariate normal distribution have covariances that equal zero, then
A) the correlation will most often be zero, but does not have to be. B) the variables are independent. C) you should use the ?2 distribution to calculate probabilities. D) the marginal distribution of each of the variables is no longer normal.
Economists argue that unhindered international trade leads to an efficient outcome. What is meant by "an efficient outcome" in this context?
A) an outcome in which wages are roughly equal around the world B) an outcome in which the standard of living is roughly equal around the world C) an outcome in which an individual can choose to specialize in a certain line of work and be certain that he or she can make a living at that until retirement D) an outcome in which resources are devoted to their most efficient use
Real planned investment spending is positively related to all of the following EXCEPT
A. producer expectations of future profit. B. the interest rate. C. wealth. D. real disposable income.