If a firm in a competitive industry is making zero economic profit but still producing, it must be the case that:
a. MC = MR > ATC.
b. MC = MR < ATC.
c. MC = ATC > MR.
d. MC = MR = ATC.
e. this situation is not possible.
d
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A bank creates money by
A) lending its excess reserves. B) purchasing currency from the Federal Reserve. C) buying bonds from the Federal Reserve. D) printing more checks.
An economy currently has an inflationary gap. An increase in the money wage rate will ________ the inflationary gap and ________ the price level
A) decrease; decrease B) increase; increase C) increase; decrease D) decrease; increase
Social Security benefits are determined by a complex formula that is rarely discussed publicly but the information is available on the Social Security Administration's website
A recipient's lifetime earnings is indexed and averaged over the highest 35 years of earnings to obtain an Average Monthly Indexed Earnings amount (AIME). If Social Security benefits begin at age 65 to 67, the monthly benefit in 2007 is 90% of the first $680 of AIME, 32% of AIME above $680 and less than $4100, and only 15% of AIME in excess of $4100 . For example, an individual whose indexed earnings were at the poverty level of $10,200/year would receive 78.4% of that in benefits, while an average earner of $37,000/year would receive only 44.8% of that in benefits, and individual's with above average earnings receive an even lower proportion in benefits. Using this information how could one argue that the payroll tax is not regressive?
It is possible that a multi-product monopolist will reduce the quality of a product below what its users prefer in order to make more profit
Indicate whether the statement is true or false