How is a politician similar to an entrepreneur?
A) Each advances a project solely in the public interest.
B) Each advances a project only if the expected marginal benefits equal the expected marginal costs.
C) Each advances a project only if the expected marginal benefits exceed the expected marginal costs.
D) Each advances a project only if they impose no negative externalities.
C
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Refer to Table 26-1. The hypothetical information in the table shows what the values for real GDP and the price level will be in 2017 if the Fed does not use monetary policy
Which of the following policies makes sense if the Fed wants to keep real GDP at its potential level in 2017? A) The Fed should lower the target for the federal funds rate. B) The Fed should pursue contractionary policy. C) The trading desk should sell Treasury securities. D) The Fed should lower capital gains taxes.
Each firm under perfect competition charges different prices for its products
a. True b. False Indicate whether the statement is true or false