Which of the following statements about monopoly is not correct?
a. In order for a monopoly to persist, there must be barriers to the entry of other firms.
b. When a monopolist increases production, the quantity effect will tend to increase total revenue and the price effect will tend to decrease total revenue.
c. A monopolist can sell as much as it wants at whatever price it chooses.
d. Because a monopoly has market power, it will charge a price higher than what would prevail under conditions of perfect competition
Answer: c. A monopolist can sell as much as it wants at whatever price it chooses.
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The sorting and separation of people by various characteristics, including race, ethnicity, religion, and gender is called
A) affirmative action. B) discrimination. C) segregation. D) demographic manipulation.
The table below shows data for Brazil
2006 2007 Real GDP growth rate 3.8 5.4 Inflation rate 4.2 3.7 Assuming the rate of velocity change is constant A) the growth rate of money increased between 2006 and 2007. B) the money growth rate was -0.4 percent in 2006. C) the growth rate of nominal GDP was 1.7 percent in 2006. D) the demand for money curve shifted leftward in 2006.
The GDP growth rate:
A. is a measure to track changes in an economy over time. B. looks at changes in GDP across different time periods. C. is measured as the percent change in real GDP from one time period to the next. D. All of these statements are true.
Whenever there is excess demand for real balances, short-run adjustment occurs because:
a. savers and investors buy bonds and drive up their prices (drive down nominal rates of interest). b. investors and borrowers sell bonds (convert to cash) and drive down their prices (drive up nominal rates of interest). c. the price level falls to restore real balances. d. aggregate demand is decreased to restore equilibrium.