How will the price and output of a monopolist compare with perfect competition?
A. The output of the monopolist will be too large and the price too high.
B. The output of the monopolist will be too large and the price too low.
C. The output of the monopolist will be too small and the price too high.
D. The output of the monopolist will be too small and the price too low.
Answer: C
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If a country began exporting product A and importing product B, then, as compared to the autarky (no-trade) situation, the marginal cost of product A will
A) increase. B) decrease. C) shift outward. D) shift inward. E) remain the same.
Under the Bretton Woods agreement, the officially determined value of a country's currency is referred to as its
A) GDP. B) par value. C) exchange rate. D) value-to-weight ratio.
Along a linear demand curve,
a. both the slope and price elasticity are constant b. the price elasticity is constant, but the slope varies c. total revenues are constant d. the slope is constant, but the price elasticity varies e. total revenues are negative
In a booming economy, discretionary fiscal policy:
A. can be added to the automatic stabilizers effects of policies already in place. B. often acts counter to the automatic stabilizers that already exist. C. removes the effect of the automatic stabilizers that already are present. D. All of these are true.