A monopolist always faces a demand curve that is:
A. perfectly inelastic.
B. perfectly elastic.
C. unit elastic.
D. the same as the entire market demand curve.
Answer: D
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The full employment level of GDP is sometimes referred to as “potential GDP.”
Answer the following statement true (T) or false (F)
Which of the following conclusions is not supported by the Three-Sector-Model?
a. A decrease in borrowing causes the real risk-free interest rate to fall and equilibrium quantity of real loanable funds to fall. b. An increase in the supply of a nation's real loanable funds reduces the real risk-free interest rate and increases the equilibrium quantity of real loanable funds. c. An increase in a nation's demand for goods and services within the intermediate range results in an increase in the real GDP and a higher GDP Price Index. d. An increase in the value of a nation's currency encourages domestic exports and discourages imports. e. All of the above are supported by the Three-Sector Model.
New firms will likely enter a monopolistically competitive market when price exceeds
a. marginal revenue. b. average revenue. c. marginal cost. d. average total cost.
If U.S. imports of goods and services exceed exports
A. GDP in the United States will be less than the sum of consumption, investment, and government purchases. B. GDP in the United States will exceed the sum of consumption, investment and government purchases. C. net exports for the United States are positive. D. None of the choices are true.