In the long-run equilibrium for a perfectly competitive market, firms will choose the level of output where
a. profit is minimized
b. short-run average total cost is minimized
c. long-run average total cost is minimized
d. short-run profit is maximized
e. long-run average fixed cost is minimized
C
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Which of the following is not an important contribution of the agricultural sector to overall development:
a. increasing national food supplies b. permitting foreign exchange earnings through imports c. allowing excess labor to flow to urban areas d. providing savings for industrial investment e. increasing the demand for manufactured goods g. All of the above are important contributions.
Quantitative easing by the Fed refers to
A) the creation of bank reserves by engaging in large-scale open market operation at very low interest rates. B) decreasing the money supply during a recession to prevent inflation. C) selling private securities issued by the Fed. D) lowering the federal funds rate while increasing the discount rate. E) lowering the required reserve ratio to zero percent.
As the real wage rate increases, the
A) quantity of labor supplied increases. B) supply of labor curve shifts rightward. C) supply of labor curve shifts leftward. D) quantity of labor supplied increases and the supply of labor shifts rightward.
The concept of adverse selection helps to explain all of the following EXCEPT
A) why firms are more likely to obtain funds from banks and other financial intermediaries, rather than from the securities markets. B) why indirect finance is more important than direct finance as a source of business finance. C) why direct finance is more important than indirect finance as a source of business finance. D) why the financial system is so heavily regulated.