Which of the following expressions is correct for a competitive firm?
a. profit = (quantity of output) x (price - average total cost)
b. marginal revenue = (change in total revenue)/(quantity of output)
c. average total cost = total variable cost/quantity of output
d. average revenue = (marginal revenue) x (quantity of output)
a
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Inflation is the increase in:
A. imports relative to exports. B. total output per worker. C. total output. D. the general level of prices.
During World War II, the increasing productivity of workers who built ships was due primarily to
A) human capital accumulation through schooling and training. B) human capital accumulation by repeatedly doing the same tasks. C) discoveries of new and better technologies. D) investments by shipyards in new capital equipment.
An increase in autonomous spending is sure to reduce the real money supply when
A) the economy is in the liquidity trap. B) the IS curve is vertical. C) the economy is at full employment. D) velocity is constant.
According to the Lucas critique, changes in economic policy are likely to have important effects on
A) the available amounts of natural resources. B) the behavior of consumers and firms. C) the preferences of consumers. D) none of the above