Your real wealth is measured as the
A) amount of assets you have in dollar terms.
B) amount of money you have.
C) amount of goods and services your wealth will buy.
D) amount of goods you have divided by the price level.
C
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Answer the following statement(s) true (T) or false (F)
1. A monopoly's supply curve is the portion of its marginal cost curve that lies above its average variable cost curve. 2. A simple profit-maximizing monopoly will choose its price and quantity from the elastic portion of its demand curve. 3. Unlike perfectly competitive firms, monopolies do not produce where marginal revenue equals marginal cost, thus leading to deadweight loss. 4. In practice, many monopolists are required to earn zero economic profit. 5. If a natural monopoly charged the competitive price, it would earn a negative profit.
Why is a dollar today more valuable than a dollar a year from now?
A) The unknown future is riskier than the known present. B) The dollar today can be immediately used to buy something. C) A dollar a year from now will likely have less purchasing power because of inflation. D) all of the above
When a variable is top coded, its value is known only up to a certain threshold.
Answer the following statement true (T) or false (F)
Transfer payments are payments that are:
A. made in market transactions in order to get the seller to transfer the goods or services to the buyer. B. made in order to obtain public goods or services. C. payments made to households that can then be spent by the households. D. made to firms in order to transfer goods and services to the government.