When a firm is operating at an efficient scale,
a. average variable cost is minimized.
b. average fixed cost is minimized.
c. average total cost is minimized.
d. marginal cost is minimized.
c
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If the MPS = 0.2, the multiplier would be
A) 0.5. B) 1. C) 2. D) 5.
Which of the following creates job rationing?
A) The real wage rate is below the equilibrium level. B) The real wage rate is equal to the equilibrium level. C) An increase in unemployment benefits. D) The real wage rate is above the equilibrium level. E) Job search decreases.
Assume an economy is in equilibrium at a real GDP of $5 trillion. If aggregate expenditure (AE) increases by $1 trillion, the economy's equilibrium real GDP is likely to _____
a. increase by $1 trillion b. increase by more than $1 trillion c. increase by less than $1 trillion d. decrease by $1 trillion e. decrease by more than $1 trillion
Government intervention can be productive and efficiency enhancing:
A. whenever it regulates a market. B. in markets for public goods and common resources. C. because the government always acts with altruistic motives. D. except in markets for public goods.