The firm will make the most profits if it produces the quantity of output at which
a. marginal cost equals average cost.
b. profit per unit is greatest.
c. marginal revenue equals total revenue.
d. marginal revenue equals marginal cost.
d
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A deficit in a country's current account means that:
a. the country is running a net deficit in its financial account. b. the country is a net lender to the rest of the world. c. the country is running a net surplus in its financial account. d. the country will have a positive value of net exports. e. the domestic production is in excess of domestic spending.
In the short run, when a firm produces zero output, variable cost equals
A. Total cost. B. Marginal cost. C. Zero. D. Fixed cost.
The Marshall-Lerner condition holds that a country's current account balance will ________ in response to a real ________ in a nation's currency if ________
A) improve; depreciation; sum of the price elasticities of export and import demand exceeds 1 B) worsen; depreciation; sum of the price elasticities of export and import demand exceeds 1 C) improve; appreciation; sum of the price elasticities of export and import demand exceeds 1 D) improve; appreciation; sum of the price elasticities of export and import demand exceeds 0 E) worsen; depreciation; sum of the price elasticities of export and import demand exceeds 0
Cost-push inflation is to ________ as demand-pull inflation is to ________
A) impatience; inaccuracy B) entering; exiting C) activism; nonactivism D) fiscal; monetary E) none of the above