If a monopolist were to produce in the inelastic segment of its demand curve

A) total revenue would be at a maximum.
B) total revenue would be at a minimum.
C) the firm would maximize profits.
D) a further drop in the price will change quantity demanded less than proportionately.


D

Economics

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If buyers cannot assess the quality of used cars but there are warranties for cars,

A) too few lemons are sold. B) too many good used cars are sold. C) good used cars are sold at a higher price than lemons. D) there is an adverse selection problem.

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Since 1925, the longest expansion in the United States lasted:

A. 21 months. B. 120 months. C. 43 months. D. 60 months.

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Suppose that the marginal propensity to consume (MPC) is .75 and there is an increase in investment spending of $100,000. As a result, equilibrium real Gross Domestic Product (GDP) would increase by

A. $20,000. B. $500,000. C. $400,000. D. $100,000.

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