The sum of the components of aggregate expenditure that vary with real GDP equal
a) induced expenditures
b) the MPC
c) autonomous expenditures
d) autonomous consumption
a) induced expenditures
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Under monopolistic competition, firms have prices ________ marginal cost and long-run profits that are ________ (net of fixed costs).
A. above; positive B. above; close to zero C. below; positive D. below; close to zero
A cartel:
a. is a group of firms formally agreeing to control the price and the output of a product. b. has as its primary goal to reap monopoly profits by replacing competition with cooperation. c. is illegal in the United States, but not in other nations. d. all of these.
The supply curve that monopsonists face is different from the supply curves that firms in competitive labor markets face because with a monopsony,
a. d and e. b. the supply curve of labor is relatively flat. c. offering a wage lower than the market wage means having no workers. d. the employer faces the market supply curve. e. the firm does not take the wage as given.
If the country wanted to produce the maximum total number of units of guns and butter combined, it would produce at point(s) ________________.
