Suppose a monopolist's demand curve lies below its average variable cost curve. The firm will:
a. earn an economic profit.
b. stay in operation in the short-run.
c. shut down.
d. earn an economic profit in the long run.
c
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Why do banks create money? Do they create money to help the Federal Reserve control the money supply or is there a more basic reason?
What will be an ideal response?
Input proportions are usually fixed by technological conditions alone
a. True b. False Indicate whether the statement is true or false
Which of the following statements is normative?
A. A large budget surplus is likely to lower interest rates. B. High taxes tend to decrease saving. C. When the Federal Reserve increases the money supply, interest rates decrease. D. Large budget deficits should be avoided.
National income is $600, corporate taxes are $20, Social Security contributions are $60, retained earnings are $10, personal taxes are $100, and transfer payments are $80. Disposable income is
A. $450. B. $490. C. $410. D. $510.