In the short run, the profit maximizing (or minimizing) quantity of output for any firm to produce exists at that output level at which marginal revenue equals marginal cost
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following multiplier concepts is most important from the point of view of devising an activist policy?
A) the income and money-creation multipliers B) the dynamic multipliers, that is the timing of multiplier effects given a policy change C) the long-term multipliers, that is the total effect from several time periods given a policy change D) the money-creation multiplier
The noninstitutional population does not include those members of the population who are
What will be an ideal response?
When firms decide how much labor to hire, one of the factors that influences them is the
A) nominal wage rate plus the inflation rate. B) nominal wage rate divided by the price level and then multiplied by 100. C) nominal wage rate minus the inflation rate. D) real wage rate plus the inflation rate. E) nominal wage rate divided by the inflation rate and then multiplied by 100.
In a fully-funded social security program
A) the young pay for the benefits of the old. B) the young are forced to save for their own retirement. C) the young have to buy bonds for the old. D) the young are forced to save for the retirement of the old.