When a purely competitive firm is in long-run equilibrium and is allocatively efficient:
A. total revenue is at a maximum.
B. total cost is at a minimum.
C. marginal cost equals marginal revenue.
D. average variable cost equals marginal cost.
Answer: C
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Refer to Figure 17-6. Under Scheme I
A) workers signal their productivity to the firm by consistently selling above 30 vacuum cleaners. B) the incentive to increase productivity only occurs for sales of fewer than 20 vacuum cleaners or more than 30 vacuum cleaners. C) workers compete with each other to see who can sell more than 20 vacuum cleaners in the shortest possible time. D) workers have no incentive to sell more than 30 vacuum cleaners.
In the short-run macro model, what is the relationship between income and government purchases?
a. It is positive and stable. b. It is positive but unstable. c. It is negative and stable. d. It is negative but unstable. e. There is no relationship between the two variables.
The price of a stock should equal the face value of its expected future dividends.
Answer the following statement true (T) or false (F)
The free-trade agreement signed by Canada, Mexico, and the United States in 1992 is known as
A. NAFTA. B. DOHA. C. GATT. D. WTO.