The zero-profit point shows the price below which a perfectly competitive firm lacks sufficient revenue to cover its variable costs

If the Fed lowers the federal funds rate, which of the following occurs?

A) Investment increases. B) Consumption expenditure decreases. C) The price of the dollar on the foreign exchange market increases. D) Net exports decrease. E) Government expenditure on goods and services increases.

Which of the following is most important if the living standards of people residing in a country are going to improve?

a. growth of population b. growth of per capita GDP c. growth of the money supply d. growth of government expenditures as a share of GDP