If the demand for a good decreases because consumer income increases, the good is a(n):
A. inferior good.
B. normal good.
C. necessity good.
D. luxury good.
Answer: A
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When real GDP is ________ potential GDP, the unemployment rate is ________ the natural unemployment rate
A) greater than; less than B) less than; equal to C) equal to; greater than D) greater than; greater than
An advantage of the partnership form of business organization is
A) its limited liability. B) its limited access to capital, thus reducing the possible size of debt. C) the ability of its owners to specialize. D) that it is difficult to start up, because a lot of thought has to go into the establishment of the firm.
The profit maximizing price for the monopolist will be
A. $5.00. B. $2.90. C. $3.35. D. $4.50.
Refer to the information provided in Figure 14.1 below to answer the question(s) that follow.
Figure 14.1Refer to Figure 14.1. Six chewing gum producing firms form a cartel. The firms have identical cost structures. If the cartel produces the profit-maximizing output level, each firm should produce
A. 2,000 packs of chewing gum. B. 6,000 packs of chewing gum. C. 12,000 packs of chewing gum. D. indeterminate output levels from this information.