If the entire output of a market is produced by a single seller, the firm
A. Is a monopoly.
B. Is producing a new product.
C. Faces perfectly inelastic demand.
D. Can charge any price it wants and not lose customers.
Answer: A
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Which of the following factors is always present in consumer decision making?
A. Taxes B. High prices C. Scarcity D. Changing consumer tastes E. Cost-of-living adjustments to income
Lisa's hourly pay increases from $8 to $10 as her performance improves. We can conclude that:
a. her marginal cost of leisure declines. b. her opportunity cost of leisure increases. c. her opportunity cost of work increases. d. her marginal cost of work declines.
Why would a radio station give money to listeners? Does this violate the economic way of thinking?
You are a member of Congress in 2007–2009 when the economy is in a recessionary gap. If your goal is to achieve full employment, you should vote for
A. decreased government purchases, increased taxes, and a cut in transfer payments. B. a balanced federal budget. C. increased government purchases, decreased taxes, and an increase in transfer payments. D. increased government purchases and transfer payments, and an equal increase in taxes.