The output effect describes the situation when a monopolist sells more output and, all else equal, total revenue
a. increases.
b. decreases.
c. is unchanged.
d. is maximized.
a
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__________ account(s) for the largest portion of public health expenditure in the United States.
A. Children's hospitals B. Universal health coverage C. Medicaid D. Medicare
An efficient allocation of risk among employees and owners must:
A. recognize that pooling of risks is never appropriate. B. recognize that employees have full control over their output. C. take into account that performance-based incentives are the sole important component of an employee's salary. D. take into account that attitudes toward risk differ among different people.
Use the following graph to answer the next question. 
The massive increase in government spending during World War II moved the economy in the span of a few short years from mass unemployment and price stability to "overfull" employment. This situation can be best illustrated in the figure above as a ________.
A. shift from AD2 to AD1 B. movement along AD1 from Q4 to Q1 C. movement along AD2 from Q2 to Q3 D. shift from AD1 to AD2
When the marginal cost curve of the monopolist shifts upward, there will be
A. an increase in both price and quantity. B. a decrease in price and in marginal revenue. C. a decrease in quantity and a decrease in marginal revenue. D. an increase in price but a decrease in quantity.