The profit-maximizing price charged by a monopolistic competitor is always equal to its average total cost of production
a. True
b. False
Indicate whether the statement is true or false
False
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Households' expenditure on goods and services are sources of revenue for the firms
a. True b. False Indicate whether the statement is true or false
The most threatening and damaging detrimental externality at issue today is:
a. The explosion and oil spill at the Deepwater Horizon b. the continued pollution of city air due to factory emissions c. water shortages d. global warming
The Great Depression provided support for Keynes' view that
a. government action was necessary to ensure interest rates remained at the equilibrium level. b. prolonged periods of unemployment would be present when demand is deficient. c. falling resource prices would bring the economy out of a recession. d. lower interest rates would quickly restore the full employment equilibrium of an economy.
According to economist A.W. Phillips
A. there is no trade-off between inflation and unemployment. B. higher rates of inflation are associated with higher rates of unemployment. C. unemployment can be effectively combated by raising wages. D. high inflation rates are associated with low unemployment rates.