A perfectly competitive firm seeking to maximize its profits would want to maximize the difference between:
a. its marginal revenue and its marginal cost
b. its total revenue and its total cost.
c. its accounting revenue and its accounting cost.
d. its price and its marginal cost.
b
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A particularly attractive feature of the ________ is that it tells you what the market is predicting about future short-term interest rates by just looking at the slope of the yield curve
A) segmented markets theory B) expectations theory C) liquidity premium theory D) separable markets theory
Suppose an economy is in equilibrium. Also suppose that consumer expectations change as the threat of war increases the likelihood of an increase in taxes. This would result in:
a. an increase in equilibrium income. b. no change in equilibrium income. c. a downward shift of the aggregate supply curve. d. a decrease in equilibrium income. e. a change in the slope of the aggregate supply curve.