The income and living standards of a nation will increase when
What will be an ideal response?
the availability of goods and services that people value increases.
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An decrease in the velocity of money for given levels of income and the interest rate would shift the
a. LM curve up. b. IS curve up. b. IS curve down. c. LM curve down.
If there are no unexploited opportunities for individuals in a particular market, then one can conclude that:
A. the market is in equilibrium. B. the market is not in equilibrium. C. government regulation has been successful. D. a socially optimal outcome has been achieved.
The accompanying table shows a pizzeria's fixed cost and variable cost at different levels of output. Pizzas sell for $20 each.Number of Pizzas Per DayFixed Cost ($/Day)Variable Cost ($/Day)050002550015050500250755004501005008501255001,650 When the pizzeria makes 100 pizzas per day, it earns an economic ________ of ________.
A. loss; $500 B. loss; $650 C. profit; $650 D. profit; $1,150
Which of the following is true of a perfectly competitive firm?
A. The firm is a price maker. B. If the firm wishes to maximize profits it will produce an output level in which marginal revenue exceeds marginal cost. C. The firm will not earn an economic profit in the long run. D. The firm's short-run supply curve is its MC curve below its AVC curve.