If a pure monopolist is producing more output than the MR = MC output:
A. the firm may, or may not, be maximizing profits.
B. it will be in the interest of the firm, but not necessarily of society, to reduce output.
C. it will be in the interest of the firm and society to increase output.
D. it will be in the interest of the firm and society to reduce output.
Answer: B
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A higher savings rate that leads to an increase in the capital stock
A) leads to higher interest rates. B) leads to increases in labor productivity. C) immediately decreases investment. D) is associated with a decrease in the rate of growth of the population.
The U.S. demand curve for foreign currency is drawn holding constant all except one of the following factors. Which is the exception?
a. income in the United States b. the inflation rate in the United States c. incomes in the rest of the world d. the interest rate in the United States relative to the rest of the world e. tastes and preferences of Americans for foreign goods
Bethany notices that whenever she receives a text message, her roommate Stella is playing her tuba. She concludes that Stella's tuba playing is causing her to receive text messages. Bethany is
A. definitely confusing correlation with causation. B. probably misguided in that there is no apparent correlation or causation in this situation. C. likely correct that there is causation, but the causation is more likely running in the opposite direction in that the text messages are causing Stella to play the tuba. D. very probably correct in her conclusion that the tuba playing causes her to receive text messages.
You are told that the four-firm concentration ratio in an industry is 20. Based on this information you can conclude that:
A. Each of the top four firms has 20 percent of industry sales B. The four largest firms account for a combined 80 percent of the industry sales C. The four largest firms account for 20 percent of industry sales D. Each of the four largest firms accounts for 5 percent of industry sales