Suppose that the profit maximizing level of output for the monopolist is 100 units, and ATC = $45.00; MC = $35.00; MR = $35.00; P = $60.00. What is the monopoly's profit?
A. $1500
B. -$1000
C. $5000
D. $4500
Answer: A
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Classical economists and Keynesian economists respect each other but hold very different views about how to read the quantity theory of money. According to the classical view,
a. velocity is constant (Keynesians agree), which means changes in price will cause changes in price or quantity (Keynesians disagree) b. quantity is constant (Keynesians agree), which means changes in the money supply could cause either changes in velocity or changes in prices (Keynesians disagree) c. velocity and price are constant (Keynesians disagree) so that changes in the money supply cause changes in quantity (Keynesians disagree) d. velocity and quantity are constant (Keynesians disagree) so that changes in the money supply only cause changes in prices (Keynesian disagree) e. velocity is constant while quantity is variable (Keynesians disagree) so that changes in the money supply change both price and quantity (Keynesians disagree)
In a ______ economy, the allocation of resources is governed by voluntary trading among businesses and consumers.
A. capitalist B. communist C. socialist D. traditional
What happens when the supply of a nonperishable good is greater than the consumer wants to buy?
What will be an ideal response?
The role of an assumption in an economic theory is to:
A. increase the scope of application. B. simplify the theory. C. add realism. D. prove the theory.