At his profit-maximizing level of output, a monopolist’s average total cost curve is tangent to his demand curve. The monopolist
A. is earning a negative economic profit.
B. may or may not be earning a negative economic profit.
C. is earning zero economic profit.
D. is earning a positive economic profit.
Answer: C
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As more people start using an operating system, more applications are developed for it. This makes the system more valuable to individual users. This is an example of a ________
A) pecuniary externality B) network externality C) positive externality D) negative externality
The shifting or returning of government economic functions to individuals and firms in the economy is known as
a. liberalization. b. intervention. c. competition. d. privatization.
Which of the following is not a problem with a public good?
a. An incentive to free-ride b. A public good is often underconsumed c. An absence of private property rights d. An inability to limit consumption to those who purchase the good e. A public good is usually underproduced
The government's fiscal policy is its plan to influence aggregate demand by changing
a. the money supply. b. minimum wage levels. c. sales taxes. d. taxation and spending.