Which of the following statements is correct? Monopolies are socially inefficient because they (i) charge a price above marginal cost. (ii) produce too little output. (iii) earn profits at the expense of consumers. (iv) maximize the market's total surplus
a. (iii) only
b. (iii) and (iv) only
c. (i) and (ii) only
d. (i), (ii), (iii), and (iv)
c
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Refer to Scenario 6.1. Suppose the friends are forced by government to combine their businesses and share what they make. With this revision to the scenario, the dominant strategy is for Tasha to work ________ and for Gloria to work ________
A) extremely hard; extremely hard B) extremely hard; somewhat hard C) somewhat hard; extremely hard D) somewhat hard; somewhat hard
Hyperinflation is a period of time when
a. people "hoard" their money. b. the price level explodes and the money supply decreases. c. both the price level and taxes explode. d. inflation is greater than 1,000%. e. the price level rises faster than the money supply.
The Federal Reserve System was created in 1913, through the Federal Reserve Act, by the:
a. U.S. President. b. Judiciary. c. Congress. d. International Monetary Fund. e. State governments.
The supply curve reflects the
a. inverse relationship between price and quantity offered b. positive relationship between demand and supply c. negative relationship between price and quantity bought d. positive relationship between price and quantity bought e. positive relationship between price and quantity offered