Which of the following is not true about a profit-maximizing monopolist?
a. The monopolist faces the downward-sloping market demand curve.
b. The monopolist always earns an economic profit.
c. The price of output exceeds marginal revenue.
d. The monopolist chooses output where marginal revenue equals marginal cost.
e. All of these are true.
Ans: b. The monopolist always earns an economic profit.
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According to supply-siders, an switch from consumption to savings by households will
a. lead to a permanent increase in output-per-worker. b. lead to a temporary increase in output-per-worker. c. lead to a decline in output-per-worker. d. not change output-per-worker.
The M1 definition of the money supply includes:
a. coins and currency in circulation. b. coins and currency in circulation and checkable deposits. c. Federal Reserve notes, gold certificates, and checkable deposits. d. Federal Reserve notes and bank loans.
Which of the following is true of fiscal spending at the federal, state, and local levels of the U.S. government?
a. In 2009, total government spending equalled around $1 billion. b. Investment expenditure in the U.S. exceeds the total spending at all levels of government. c. Government spending at federal, state, and local levels declined steadily from the 1960s until about 1980. d. Through the 1950s and 1960s, the U.S. government maintained a balanced budget. e. Federal government spending exceeds state and local government spending in the U.S.
Which of these changes is likely to be witnessed by a monopolistically competitive firm in the long run if it incurs a loss in the short run? a. The demand curve faced by it will become horizontal. b. The market price of its product will increase
c. Its average cost of production will decrease. d. Its marginal cost of production will decrease.