In Figure 17-4 above, the profit-maximizing quantity, in the absence of "menu costs," ________, with profit equal to ________
A) remains Y0, J + K
B) remains Y0, H + K
C) remains Y0, G + H + J + K
D) falls to Y1, G + J
E) falls to Y1, F + G + J
A
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If the interest rate on borrowing falls,
a. the demand curve for loans will shift out. b. the discounted value now of money to be received in the future will fall. c. some previously unprofitable prospective investments will become profitable. d. All of the above are correct.
Suppose that 1982 is the base year for the Consumer Price Index (CPI) and in 2019 the CPI is 270. What does this "270" mean?
a. What cost $100 in 1982 on average cost 270 times as much in 2019. b. What cost $100 in 1982 on average cost $270 in 2019. c. What cost $100 in 1982 on average cost 0.27 times as much in 2019. d. What cost $100 in 1982 on average cost $27 more in 2019
When there is no other way of producing a given level of output with a smaller total value of inputs, the firm is operating at:
a) maximum profit. b) an irrelevant output. c) maximum output. d) minimum cost. e) optimal output.
With the economy booming, the government starts to worry about the increasing rate of inflation, and decides to cut its spending on highway maintenance and defer it to sometime in the future. This is an example of:
A. discretionary fiscal policy. B. expansionary fiscal policy. C. an automatic stabilizer. D. None of these is true.