Which of the Following Best Describes the Employment Act of 1946

question 21

Multiple Choice

Which of the following best describes the Employment Act of 1946?

• A) A piece of New Deal legislation that had to be postponed until after the war
• B) An effort to stabilize the U.S. balance of payments as the world moved toward ?using the U.S. dollar as the main reserve currency
• C) An attempt to reduce the overall extent of federal responsibility in the ?post-war national economy
• D) All of the above

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Definitions:

MC = ATC

The condition where marginal cost equals average total cost, often used to identify the point of minimum average cost in the short run.

Zero Profits

A situation where a company's total revenues equal its total costs, meaning it is breaking even and not generating any profit.

P = MC

An equation that states that the price (P) of a product is equal to its marginal cost (MC), indicating the point at which the production of one more unit of a good or service is exactly covered by the sale price, often used in the context of perfect competition markets.

MC > ATC

Denotes a situation in which the marginal cost of producing an additional unit of a good is greater than the average total cost, implying that producing more of the good will increase the per unit cost.