If a monopolist calculates its marginal revenue to be $15 and marginal cost to be $16, then the monopolist should:
A. leave its output and price unchanged.
B. increase its output.
C. decrease its output.
D. lower its price.
Answer: C
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Joe consumes pizza and movies. Pizza and movies are substitutes. According to marginal utility theory, if the price of a pizza rises then
A) the demand curve for pizza shifts leftward. B) the demand curve for pizza shifts leftward and the demand curve for movies shifts rightward. C) there is an upward movement along the demand curve for pizza. D) there is an upward movement along the demand curve for pizza and the demand curve for movies shifts rightward.
Assume that as a firm decreases its price its total revenue decreases. Which of the following is a possible value of its price elasticity of demand?
A. 0.4 B. 1 C. 1.4 D. 4
Suppose the annual growth rate of GDP in Belize is 3.5 percent. In 20 years, GDP in Belize will double:
A. 1 time. B. 1.5 times. C. 3.5 times. D. 7 times.
In the early stages of a recession, what type of unemployment gets larger?
A. Seasonal. B. Frictional. C. Structural. D. Cyclical.