Under pure monopoly, a profit-maximizing firm will produce:
A. in the inelastic range of its demand curve.
B. in the elastic range of its demand curve.
C. only where marginal revenue is zero.
D. only where total costs are zero.
Answer: B
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A decrease in wealth ________ consumption expenditure and ________
A) increases; shifts the consumption function upward B) increases; shifts the consumption function downward C) decreases; results in a movement downward along the consumption function D) decreases; shifts the consumption function downward E) decreases; shifts the consumption function upward
If a nation has an absolute advantage in the production of some commodity, it
a. can gain only if it has a comparative advantage in the commodity. b. may still gain from trade in the commodity. c. cannot gain from trade in the commodity. d. cannot gain unless it has an absolute advantage in every other commodity.
Derive the relation between savings, domestic investment, and net capital outflow using the national income accounting identity
Structural unemployment results primarily from automation and long-lasting changes in demand
Indicate whether the statement is true or false