A monopolist has less to gain from cost-saving measures in the production process when
a. the monopoly is unregulated.
b. regulators use average cost pricing to set the monopolist's price.
c. the demand for the product of the monopolist is inelastic.
d. changes in the regulated price occur only after considerable delay.
B
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Textbook examples of trade between two nations are simplified in order to show how two nations both benefit from trade. These examples are misleading because
A) some individuals in both countries may be made worse off because of trade. B) trade restrictions are likely to be imposed as trade grows over time. C) they do not account for the reduction in wages that occurs in both countries as a result of trade. D) in the real world, rich countries can take advantage of poor countries.
What are the main influences on the quantity of real money that people and businesses plan to hold?
What will be an ideal response?
In a market economy, businesses are encouraged to produce because of
a. the profit motive. b. altruism. c. government direction. d. civic duty.
Assuming that, over a given period, the value of transactions in current dollars is $8 trillion and the money stock is $500 billion. What is the transaction velocity of money?
a. .0625 b. 12 c. 16 d. None of the above