The monopolist shown in the above graph
A. is making a profit.
B. is taking a loss.
C. is breaking even.
D. may be making a profit or breaking even.
B. is taking a loss.
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How does a market system prevent people from getting as many goods and services as they wish?
A) In a market system, firms can charge any price they want, thus preventing poor people from getting as many goods and services as they wish. B) Governments interfere with the market mechanism to influence the allocation of goods and services. C) The market system allocates goods and services to those who are able to pay for those products and therefore income is a limiting factor. D) The government imposes taxes on those who earn beyond a certain amount of income.
Unlike a "service," a "good"
a. is desirable b. uses resources to satisfy wants c. is physical and tangible d. is abundant and free e. is a resource
If workers realize that an increase in nominal wage rates does not necessarily constitute a rise in real wages, then we would expect:
a. an increase in employment. b. a decrease in employment. c. a downward movement along the Philips curve. d. a rightward shift of the Phillips curve. e. a leftward shift of the Phillips curve.
If the price of a good increases, all else equal, consumers perceive
a. an increase in purchasing power if the good is an inferior good. b. an increase in income if the price increase occurs for a normal good. c. a decrease in purchasing power. d. a net gain in purchasing power if they decrease consumption of some goods.