Regulatory commissions may focus on establishing a "fair-return" price to be charged by a monopolist. Under this policy, the monopolist would earn:
a. positive economic profits.
b. zero economic profits.
c. negative economic profits.
d. monopoly profits.
b
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In a open economy, aggregate expenditures are the sum of personal consumption, investment, government, and net export expenditures
Indicate whether the statement is true or false
Assuming that beef and chicken are substitutes, an increase in the price of beef, other things being equal, will:
a. increase the demand for chicken. b. decrease the demand for chicken. c. not change the demand for chicken. d. decrease the demand for beef.
While vacationing in Turkey you see a rug you consider purchasing. The seller tells you the rug costs 1,200 Turkish lire. A. If the exchange rate is .60 lira per dollar, how many dollars does the rug cost? B. If the dollar depreciates against the lira, will it take more or fewer dollars to buy the rug? Explain
Other things the same, if the central bank decreases the rate at which it increases the money supply, then
a. unemployment and inflation rise in the short run. b. unemployment rises and inflation falls in the short run. c. unemployment falls and inflation rises in the short run. d. unemployment and inflation fall in the short run.