In the short run, how will a profit-maximizing monopolist react if its marginal cost suddenly increases? It will
a. lower price to expand revenue possibilities
b. restrict output to extract a higher price from customers
c. maintain the current price if profit is still positive
d. increase plant size to lower marginal cost
e. decrease plant size to lower marginal cost
B
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Suppose the shift from AD0 to AD1 and from AS0 to AS1 is the result of fiscal policy. Which of the policies below could lead to these shifts?
i. An increase in government expenditure ii. A tax cut iii. A decrease in government expenditure iv. A tax hike A) iv only B) i and ii C) i and iv D) i only E) iii and iv
In 2008, the government bought $2,883 billion worth of goods and services that were part of GDP, representing about _________ of the total
a. half b. a third c. a fifth d. a quarter e. two fifths.
Which of the following events would cause a movement upward and to the left along the demand curve for olives?
a. The number of people who purchase olives decreases. b. Consumer income decreases, and olives are a normal good. c. The price of pickles decreases, and pickles are a substitute for olives. d. The price of olives rises.
Credit cards are:
A. neither financial liabilities nor financial assets. B. financial assets for the issuer. C. financial liabilities for the issuer. D. financial assets for the holder.