Figure 8.12 shows a demand and costs of an unregulated monopoly. At the profit maximization output, the firm earns a profit of:
A. $0.
B. $10,000.
C. $50,000.
D. $80,000.
Answer: B
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Consider an economy made up of 100 people sixteen years of age and older, 60 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The number of people in the labor force is _____
a. 30 b. 60 c. 85 d. 90 e. 70
The Keynesian theory is consistent with the business cycle fact that inflation is
A) procyclical and leading. B) procyclical and lagging. C) countercyclical and leading. D) countercyclical and lagging.
All else constant, if butter and margarine are substitute goods, then as the price of butter rises,
a. the demand for margarine will fall b. the quantity of butter demanded will fall c. the demand for butter will fall d. the demand for butter will rise e. butter and margarine will become complementary goods, provided that butter is a normal good
Most governments subsidize basic education because
A) there are external costs associated with well educated citizens. B) the marginal social benefit of education is greater than the marginal private benefit. C) of the existence of private schools. D) None of the above answers are correct.