The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment.
B. exogenous spending.
C. recessionary gaps.
D. expansionary gaps.
Answer: D
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Economic inefficiency exists when
A) P = MR. B) P = MC. C) MR = MC. D) P > MC.
If income rises, most consumers will increase the quantity demanded of an inferior good
a. True b. False Indicate whether the statement is true or false
A(n) ________ in a firm's scale of production leads to ________ average total cost when there are economies of scale.
A. increase; higher B. decrease; no change in C. increase; lower D. decrease; lower
Refer to the information provided in Figure 14.1 below to answer the question(s) that follow.
Figure 14.1Refer to Figure 14.1. Six chewing gum producing firms form a cartel. The firms have identical cost structures. If the cartel produces the profit-maximizing output level, each firm should produce
A. 2,000 packs of chewing gum. B. 6,000 packs of chewing gum. C. 12,000 packs of chewing gum. D. indeterminate output levels from this information.