If we wanted to consider all the money that had been "multiplied" in the economy, we would think about:

Adam Smith's behavioral assumption about humans was that people

A) usually act in a rational, self-interested way. B) are consistently greedy. C) typically act irrationally. D) typically act randomly.

If a firm has excess capacity, it means

A) that the firm's long-run average cost of producing a given quantity exceeds its short-run cost of producing that same quantity. B) that the firm's quantity supplied exceeds its quantity demanded. C) that the firm expends too much of its resources on advertising its product without seeing an appreciable increase in sales. D) that the firm is not producing its minimum efficient scale of output.