A monopolist faces a demand curve given by P = 20 - Q and has total costs given by TC = Q2. By using a bit of calculus, you should be able to determine that the firm's marginal revenue is MR = 20 - 2Q and its marginal cost is MC = 2Q. What is its profit-maximizing output level?
a. 5
b. 6
c. 7
d. 8
Answer: a. 5
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Everything else held constant, a decrease in the currency ratio will mean ________ in the M1 money multiplier and ________ in the M2 money multiplier
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
In any one year, the Social Security taxes collected by the government must necessarily equal the Social Security payments that the government makes
Indicate whether the statement is true or false
Refer to Figure 8.1. Which graph best represents a variable cost function?
A. A
B. B
C. C
D. D
A theory predicts that the more a student studies, the higher his or her grades will be. This theory is
A) not falsifiable. B) falsifiable. C) too difficult a theory to test. D) inconsistent with the fact that some students study less than other students, yet receive higher grades. E) b and d