When the government imposes an effective price ceiling on a monopolist, what will be sure to happen in the short run?
A. The dollar price will increase.
B. There will be a shortage of the product.
C. The dollar price will fall.
D. There will be a surplus of the product.
Answer: C
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Indicate whether the statement is true or false
Which of the following statements about inflation is correct?
a. Evidence from studies indicates that, in U.S. newspapers, inflation is mentioned less frequently than other economic terms, such as unemployment and productivity. b. People believe the inflation fallacy because they tend to believe too strongly in the principle of monetary neutrality. c. Nominal incomes are determined by nominal factors; they are not affected by real factors. d. Inflation does not in itself reduce people's real purchasing power.
The rapid speed with which the stimulus bill passed through both houses of Congress and was signed by the President could be used as an argument for
A. activist fiscal policy. B. activist monetary policy. C. expansionary fiscal policy. D. contractionary monetary policy.
If MFC > MRPL, the firm should
A. get rid of some capital. B. lower wages. C. reduce the number of workers. D. hire more workers.