Which of the following is NOT true about the demand curve faced by a monopolist?
A) The demand curve is downward sloping.
B) The firm's demand curve is the same as the market demand curve.
C) The marginal revenue curve is below the market demand curve.
D) The demand curve is perfectly elastic.
D
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When an inverse relationship is graphed, the resulting line or curve is:
a. horizontal. b. vertical. c. upward-sloping. d. downward-sloping.
For an economy starting at potential output, a decrease in autonomous expenditure in the short run results in a(n):
A. expansionary output gap. B. increase in potential output. C. recessionary output gap. D. decrease in potential output.
All of the following are true about a monopolist EXCEPT
A) the demand curve for its product is perfectly elastic. B) it produces a product with no close substitutes. C) its demand curve is the same as the market demand for the industry. D) it is a single seller of a good or service.
Because of improved productivity, wages increase 10 percent. As a result, gross domestic income increases. What happens to Gross Domestic Product?
A. Gross Domestic Product would not change since consumption expenditures would rise but investment spending would fall. B. Gross Domestic Product also increases since consumption expenditures would increase. C. Gross Domestic Product decreases as people pay more taxes on their higher incomes. D. Gross Domestic Product would decrease because businesses are spending more on wages.