The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output.
B. government policy.
C. decreasing inflation only.
D. increasing or decreasing inflation.
Answer: D
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Money must be relatively "scarce" if it is to have value. True or False?
Indicate whether the statement is true or false.
A country's balance of payments records
A. the prices that a country pays for its imports and the prices that the country receives for its imports. B. the value of a country's holdings of foreign assets, minus the value of foreign holdings of the country's assets. C. capital gains and losses on a country's international assets. D. the flows of value between that country's residents and residents of the rest of the world during a period of time.
Table 17.1Refer to Table 17.1. If the price of output is $2 per unit and we observe the firm hiring six workers, if the firm is maximizing profit, the wage rate must be between ________ and ________.
A. $20; $40 B. $30; $50 C. $40; $60 D. $500; $600
Refer to the graph below. When the total revenue curve reaches a maximum, marginal revenue is:
The following graph shows a total revenue curve for a monopolist.
A. Positive
B. Negative
C. Zero
D. Greater than price at that level of output