In the short run, a firm operating in a monopolistically competitive market
a. produces an output level where marginal revenue equals average total cost.
b. sets price equal to demand where marginal revenue equals marginal cost.
c. must earn zero economic profits.
d. maximizes revenues as well as profits.
b
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The FOMC directive contains a target growth rate for
A) nominal GDP. B) real GDP. C) the inflation rate. D) M2.
With regard to education of freed slaves after the Civil War (1861–1865),
(a) there was a rapid rise of literacy. (b) Southern public schools were "separate, but equal." (c) most had received no education under slavery and were illiterate. (d) all of the above are true.
Assuming perfect perfect capital mobility, the BP schedule is
a. vertical. b. horizontal. c. upward sloping. d. downward sloping. e. flat.
In the circular flow, investment refers to spending on
a. government bonds. b. certificates of deposit. c. capital goods. d. consumer goods.