A profit-maximizing firm with market power will always produce a level of output where
A. demand is inelastic.
B. price is greater than average total cost.
C. marginal revenue is greater than average total cost.
D. demand is elastic.
Answer: D
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A retired worker receives a pension that is not indexed to inflation. Which of the following will happen if the rate of inflation rises?
A) The retiree's purchasing power will fall. B) The shareholders of the firm in which he worked will lose. C) The retiree's purchasing power will increase. D) The retiree will be better off.
Epsilon is a country whose unit of currency is the omega. New information leads people to expect that the omega will appreciate next year
To keep the foreign exchange value of the omega fairly steady, the Bank of Epsilon will ________ enough omegas on the foreign exchange market so that the ________ omegas will ________. A) buy; demand for; increase B) sell; supply of; increase C) buy; demand for; decrease D) buy; supply of; decrease
Leontief used an input-output table in order to test the
A) classical theory. B) the Heckscher-Ohlin theory. C) the Linder hypothesis. D) All of the above.
Total spending by all levels of government in the United States in 2012 amounted to roughly ________ per person
A) $20,000 B) $2,000 C) $200,000 D) $200