Deadweight loss
a. measures monopoly inefficiency.
b. exceeds monopoly profits.
c. equals monopoly profits.
d. equals monopoly revenues minus profits.
a
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The supply curve for a good can be thought of as
A. a graphical display of “market potential.” B. a graphical representation of the data in a supply schedule. C. showing the maximum quantities that firms are able to produce. D. a forecasting tool. E. All of these responses are correct.
If the foreign exchange rate is 70 cents for one Swiss franc, then
A) a car that costs 40,000 francs will cost $7,143.00. B) a wine that costs 200 francs will cost $14.00. C) a clock that costs 500 francs will cost $350.00. D) a house that costs 100,000 francs will cost $700,000.00.
Domestic income has a ________ relationship with net export spending.
A. constant B. positive C. secondary D. negative
Answer the following statements true (T) or false (F)
1) The business cycle is primarily concerned with changes in the level of overall prices over time. 2) A sometimes short, sometimes extended period of declining output and living standards is referred to as a recession. 3) The business cycle reflects both short-run fluctuations in output and long-run economic growth. 4) Economists and policymakers are generally more concerned about nominal GDP than real GDP. 5) Nominal GDP measures a nation's output in current year prices.