A unit of output whose production and sale adds less to cost than it generates in additional revenue is
A) a profitable unit to produce and sell if marginal cost declines with additional output.
B) a profitable unit to produce and sell if total receipts exceed total costs.
C) a profitable unit to produce and sell unless it must be sold at a price below average unit cost.
D) a profitable unit to produce and sell.
D
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Inflation isn't costly just because prices are going up. After all, inflation means salaries and wages are going up as well. If higher prices are not the problem, discuss two important aspects of inflation that are costly
If Bank A has excess reserves of $1 million and all other banks in the system do not have any excess reserves, then the amount of additional loans that can be made by the banking system will be:
A. $1 million also B. A fraction of $1 million C. A multiple of $1 million D. $1 million times the required-reserve ratio