A perfectly competitive firm will maximize profits when
A) average cost is greater than marginal revenue.
B) marginal cost is greater than marginal revenue.
C) marginal cost is equal to marginal revenue.
D) average cost is equal to average revenue.
C
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What is a primary determinant of the asset demand for money?
I. the interest rate II. the opportunity cost of holding money III. the supply of money A) I only B) III only C) both I and II D) both II and III
Which of the following is CORRECT about a time-series graph?
I. The x-axis measures time. II. A time-series graph can reveal if there is a trend in the variable. A) only I B) only II C) both I and II D) neither I nor II
Which of the following is correct?
a. There is no debate about the effects of higher population growth on economic growth. b. Natural resources clearly place limits on growth; there is simply no way to reduce either the amount or type of natural resources needed to produce goods. c. How much an increase in capital increases a country's output is independent of that country's current level of capital. d. Economists argue that outward rather than inward policies are likely to promote economic growth.
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
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