The ability of a monopoly to charge a price that exceeds marginal cost depends on
A) the price elasticity of supply.
B) price elasticity of demand.
C) slope of the demand curve.
D) shape of the marginal cost curve.
B
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If Caterpillar Inc raises the price of earth-moving equipment that it manufactures in Illinois, then the CPI will ________ and the GDP deflator will ________
A) increase; increase B) increase; increase by less than the CPI C) increase; not change D) not change; not change E) not change; increase
If a firms cuts inputs in half, and output falls by more than half, then there are
A) increasing returns to scale. B) decreasing returns to scale. C) constant returns to scale. D) decreasing marginal returns.
Which of the following is an example of imports?
a. Sugar bought from a retail shop b. Steel bars sold to other countries c. Clothes bought from another country d. Apples bought from a farmer
If Bank A sells a $100,000 U.S. Treasury bond to the Fed, Bank A's excess reserves will:
A. increase by $100,000. B. increase by less than $100,000. C. not change. D. decrease by less than $100,000.