If marginal revenue is greater than marginal cost, the firm should
A) raise price.
B) raise marginal revenue.
C) increase its rate of output.
D) decrease its rate of output.
C
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The economic development strategy aimed at exporting domestically manufactured goods is called a(n):
a. replacement strategy. b. market-oriented strategy. c. inward-oriented strategy. d. outward-oriented strategy. e. future-oriented strategy.
The quantity of money that households and businesses will demand
a. increases if income falls but decreases if interest rates rise. b. increases if income falls and increases if interest rates rise. c. decreases if income falls but increases if interest rates rise. d. decreases if income falls and decreases if interest rates rise.
Monopolistically competitive firms prevent the efficient use of resources because in long-run equilibrium,
A. price is greater than marginal cost. B. price equals marginal cost. C. price is less than marginal cost. D. marginal cost is greater than average total cost.
An increase in the personal income tax rate on interest income will
A. increase desired saving because the expected real after-tax interest rate falls. B. decrease desired saving because the expected real after-tax interest rate falls. C. increase desired saving because the expected real after-tax interest rate rises. D. decrease desired saving because the expected real after-tax interest rate rises.