If P = MC and MC > ATC, then a perfectly competitive firm will earn ________ profits.
A. negative
B. positive
C. zero
D. break-even
Answer: B
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If the Fed wanted to reduce the federal funds interest rate, it might: a. decrease the interest rate it pays on bank reserves. b. decrease the required reserve ratio
c. buy government securities. d. Do any of the above.
In the Keynesian model, a $5 billion decrease in investment leads to ________ in short-run equilibrium output.
A. a greater than $5 billion decrease B. no change. C. a $5 billion decrease D. a $5 billion increase
The costs of lead contamination have been estimated to be $1 billion for medical care of those sickened by lead, plumbing repairs, and reduced earnings of those affected by lead. This $1 billion can best be classified as:
A.) The benefits of government intervention. B.) The costs of government intervention. C.) Social costs of market failure. D.) Social costs of government failure
Money is essentially defined by
A) the intrinsic value of what is being used as money. B) the judicial branch. C) the government. D) social usage.