Government policies intended to decrease planned spending and output are called ________ policies.
A. fiscal
B. monetary
C. contractionary
D. aggregate
Answer: C
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There is a positive relationship between two variables if
A) neither variable moves. B) they move in the same direction. C) they move in opposite directions. D) one variable changes and the other does not.
For a perfectly competitive firm, marginal revenue is
A) less than the price. B) greater than the price. C) equal to the price. D) equal to the change in profit from selling one more unit. E) undefined because the firm's demand curve is horizontal.
Matt Taylor is one of the fishermen who comes back to the dock at the end of a fishing day with 720 fish in his boat. He and 40 other fishermen crowd the dock with their fish supplies while hundreds of people, eager to buy fish, make their demands felt on the market. Matt knows that for that fishing day
a. price cannot change b. the market-day supply curve is vertical c. the market-day demand curve is vertical d. quantity demanded is fixed e. his short-run supply curve is upward sloping
A natural monopoly is defined as an industry in which one firm
a. can produce the entire industry output at a lower average cost than a larger number of firms could. b. can produce the entire industry output at a lower marginal cost than a larger number of firms could. c. is very large relative to other firms that could enter the industry. d. can earn higher profits if it is the only firm in the industry rather than if other firms also enter the industry.