A firm operating at MC = MR must be making a profit
a. True
b. False
Indicate whether the statement is true or false
False
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Deadweight loss occurs when
A) consumer surplus is greater than producer surplus. B) surplus losses to one group due to intervention are not offset by surplus gains to another. C) consumer surplus is reduced. D) consumer surplus is negative.
Which of the following is not a reason the New York Federal Reserve Bank president always gets to vote at the Federal Open Market Committee meetings?
a. New York is the traditional financial center of the U.S. economy. b. All Fed purchases and sales of bonds go through the New York Fed's trading desk. c. New York has higher population than other cities in the U.S. d. All of the above are reasons.
Isoquants are downward sloping because
A. if more of one input is used, then less of the other input must be used to keep output constant. B. as more units of an input are used to produce a product, the firm's marginal productivity increases. C. as more units of an input are used to produce a product, total cost increases. D. Both B and C