Considering only its direct effect on income, an expansionary monetary policy tends to:
A. increase a trade deficit and decrease the exchange rate.
B. decrease a trade deficit and decrease the exchange rate.
C. increase a trade deficit and increase the exchange rate.
D. decrease a trade deficit and increase the exchange rate.
Answer: A
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Prime Pharmaceuticals has developed a new asthma medicine, for it has a patent. An inhaler can be produced at a constant marginal cost of $2/inhaler
The demand curve, marginal revenue curve, and marginal cost curve for this new asthma inhaler are in the figure above. With its patent giving it a monopoly for its new inhaler, if it is a single-price monopoly, Prime Pharmaceuticals will produce ________ inhalers and set a price of ________ for each inhaler. A) 16 million; $2 B) 10 million; $5 C) 8 million; $6 D) 8 million; $2
Why might economists prefer private ownership of monopolies over public ownership of monopolies?
What are the two tools of fiscal policy that governments can use to affect the level of aggregate demand?
A. government spending and taxation B. government spending and technology improvements C. taxation and controlling imports D. taxation and controlling exports
A technological advancement has just occurred in the computer chip industry. In the computer chip market this will lead to
A. an increase in price and a decrease in quantity. B. an increase in price and an increase in quantity. C. a decrease in price and a decrease in quantity. D. a decrease in price and an increase in quantity.