A firm that has market power has the ability:
A. to affect the price of its own product.
B. to conduct illegal activities without fear of prosecution.
C. to command consumer to buy any quantity from them.
D. to drive its competition out of the market.
Answer: A
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If a person were in the 20% tax bracket and given the choice of a $500 credit or a $2500 deduction,
A. he would not care. They would constitute the same tax benefit. B. he would take the credit every time. C. he would not qualify for either. D. he would take the deduction every time.
A firm's marginal cost is the increase in its total cost divided by the increase in its
A) quantity of labor. B) average cost. C) output. D) average revenue.
Briefly describe monetarism and the monetary growth rule
What will be an ideal response?
In the long run, larger budget deficits lead to ________
A) higher saving levels B) a fall in investment C) lower interest rates D) all of the above E) none of the above