Minimum efficient scale refers to the lowest level of output at which
A) the firm can earn a profit.
B) average cost is minimized.
C) the firm will operate.
D) the average cost curve is downward sloping.
B
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Why do many economists believe that money affects output? What is the empirical evidence in support of that belief?
What will be an ideal response?
Social Security provides incentive for individuals to
(a) save more than they consume during their working years. (b) manage their assets privately in order to prepare to live on principal and interest during retirement. (c) rely on transfer payments made by the working class to them during retirement. (d) carefully manage their private retirement portfolios and use the income earned to consume and save during retirement.
Suppose you have spent your entire budget and, for all the goods you purchase, the marginal utilities per dollar spent are identical. Which of the following is true?
a. You are being irrational. b. You can increase your utility by reallocating your income. c. You will reduce your utility if you allocate income in any other way. d. You are minimizing your marginal utility. e. You can avoid diminishing marginal utility.
How is money destroyed in the banking system?