As the level of competition in an industry increases, the price-cost margin approaches:
A) 0.
B) 1.
C) 10.
D) infinity.
A
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Which of the following statements best describes what occurs when monetary authorities sell government securities?
A. The size of commercial banks' excess reserves decreases, the money supply decreases, and the interest rates rise, thereby causing a decrease in investment spending and real GDP. B. The size of commercial banks' excess reserves decreases, the money supply decreases, and interest rates rise, thereby causing an increase in investment spending and real GDP. C. The size of commercial bank reserves increases, the money supply increases, and interest rates fall, thereby causing an increase in investment spending and real GDP. D. The size of commercial banks' excess reserves decreases, the money supply increases, and interest rates fall, thereby causing a decrease in investment spending and real GDP.
Burkes Inc should stop production in the short run if the market price of its product is less than its average total cost of production
Indicate whether the statement is true or false
Which of the following is not included in the M1 money stock?
a. small time deposits b. demand deposits c. checking account deposits d. travelers' checks e. cash in the hands of the public
The quantity of labor supplied is dependent on the size of the working population and the wage rate
a. True b. False Indicate whether the statement is true or false