What is the relationship between the marginal revenue curve and the demand curve for a single-price monopolist?
What will be an ideal response?
For a single-price monopolist, price exceeds marginal revenue. The price is obtained from the demand curve, so for a single-price monopolist, the marginal revenue curve lies below the demand curve.
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The amount of income a consumer has to spend on goods and services is known as
A) wealth. B) a budget constraint. C) purchasing power. D) effective demand.
Some superstar athletes in the sports industry earn very high levels of income relative to other occupations, and over time the wage differential has been increasing. What could have caused this?
A) The market power of athletes' unions has increased. B) Technological advances such as cable television has increased the demand for sports entertainment. C) The supply of star athletes has decreased. D) The supply of star athletes has increased due to college athletic programs.
A higher rate of saving should lead to
A) higher current consumption. B) less growth. C) more investment, higher capital growth, and more future consumption. D) a higher price level and reduced future consumption.
Which of the following is NOT an obstacle to economic development?
A) lack of entrepreneurship B) political instability C) corruption D) a central bank