If a perfectly competitive firm is producing 2,000 units and, at the 2,000th unit, the difference between marginal revenue and marginal cost (MR - MC) is zero, which of the following is true?
A) The firm is maximizing profit.
B) The firm should decrease production to maximize profit.
C) The firm should increase production to maximize profit.
D) The firm should exactly double production to maximize profit.
A) The firm is maximizing profit.
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The number of presidentially appointed members who sit on the Federal Reserve Board of Governors is:
a. none. b. seven. c. nine. d. twelve.
The Social Security retirement program is financed by a 10.6 percent payroll tax that applies to earnings up to an income cutoff that is adjusted upward annually by the growth rate of nominal wages. As of 2013, the income cutoff was
a. $15,000. b. $32,700. c. $113,700. d. $250,000.
Refer to the information provided in Figure 23.4 below to answer the question(s) that follow.
Figure 23.4Refer to Figure 23.4. Suppose the consumption function for C1 = 10 + 0.8Y, the consumption function that best fits C2 is
A. C2 = 20 + 0.8Y. B. C2 = 10 + 0.4Y. C. C2 = 20 + 0.1Y. D. C2 = 40 + 0.5Y.
The normal measurement of GDP overestimates economic well-being because it excludes
A) spending on health. B) leisure time. C) the effects of pollution. D) non-market production. E) unreported home renovations.