Under perfect competition, the firm must decide
A) the best price to charge for its product.
B) the best rate of output it should produce.
C) the optimal level of advertising to engage in.
D) the optimal level of quality and the packaging that will maximize profits.
B
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Several national fast-food chains offer "kids' meals" with free giveaway toys, something many independent, local establishments cannot afford to do. The national chains are
A) engaging in predatory pricing. B) selling meals below cost. C) distributing toys below cost. D) engaging in anti-competitive behavior because the independents cannot afford to give away toys. E) almost certainly doing none of the above.
The term "capital," as used in macroeconomics, refers to
A) the plant, equipment, buildings, and inventories of raw materials and semi-finished goods. B) financial wealth. C) the sum of investment and government purchases of goods. D) investment.
Consider the following pieces of information:
a. According to Bonnie Reyes, president and chief operating officer of Better Investing, a national organization of investment clubs, women have traditionally made up about 60 percent of the membership of investment clubs. By contrast, less than a third of team-managed mutual funds on Wall Street have even one woman on the management team. b. Research conducted by professors E. Brooke Harrington and Max Planck concluded that mixed investment clubs, on average, outperformed the typical single-sex investment club. c. The lack of gender diversity in Wall Street could be influenced by its reputation, according to professor Harrington, "for being inhospitable to women." Source: Michael Hulbert, "Strategies: At some Funds, a Gender Communications Gap," The New York Times, October 7, 2007, Sunday Money, page 5. The information presented is an example of A) a negative feedback loop. B) marginal productivity theory. C) the absence of comparable worth. D) economic discrimination.
According to the new classical economics, changes in monetary policy will only impact GDP if:
a. they impact the price level. b. they are unpredictable. c. people have perfect information about these shocks. d. None of the above.