The profit-maximizing level for all firms, regardless of industry structure, is the output level where
A) TR = MC.
B) P = MC.
C) ATC = P.
D) MC = MR.
D) MC = MR.
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Long-term solutions to communitywide poverty must involve:
A. ways to expand the range opportunities available to the population. B. increasing the value of the currency. C. ways to reduce taxes collected by local governments. D. All of these are true.
Other things constant, an increase in the expected inflation rate will
a. decrease the inflationary premium. b. increase money (nominal) interest rates. c. increase the supply of loanable funds. d. decrease the money interest rate.
A rise in the minimum wage increases the demand for union labor because this policy change
A) lowers the wage rate paid to union labor. B) raises the productivity of union labor. C) lowers the cost of a substitute for union labor. D) raises the cost of a substitute for union labor.
Which of the following is an example of money illusion?
A) An individual is willing to work more hours when the nominal wage rises by 10 percent and the overall price level rises by 5 percent. B) An individual is willing to work more hours when the nominal wage rises by 10 percent and the overall price level rises by 20 percent. C) An individual will neither increase nor decrease the number of hours she is willing to work when the nominal wage rises by 10 percent and the overall price level rises by 10 percent. D) none of the above