What should a profit maximizing monopolist do if she is currently producing where MC < MR?
a. Increase output until MC = MR.
b. Decrease output until MC = MR.
c. Shut down in the long run.
d. Keep producing at this level.
e. Operate only in the short run.
a
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An advantage of automatic stabilizers is that
A. they are built into the economy by legislation and therefore are already in place when economic conditions change. B. they give the government an opportunity to spend extra tax money collected. C. they intensify changes in the business cycle. D. they produce balanced budgets.
Refer to the following graph.
The marginal product and average product curves:
A. are A and B, respectively. B. could be either A or B. C. are B and A, respectively. D. are not drawn properly.
Which of the following modern methods of financing a corporation was not available to corporations four hundred years ago?
A) selling stock B) selling bonds C) reinvestment. D) All of these methods were used then as well as now.
Disposable personal income is found by taking
A. personal income taxes minus personal income. B. personal income taxes plus personal income. C. personal income minus personal income taxes. D. personal income times personal income taxes.