A general rise in prices is known as
a. fixed incomes
b. inflation
c. capitalism
d. voluntary exchange
Ans: b. inflation
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According to the World Bank, developing countries greatly outnumber industrial countries
a. True b. False Indicate whether the statement is true or false
All four market forms discussed in the text maximize profit where
a. P = MC. b. AR = AC. c. MR = MC. d. MC = AR.
Studies indicate that the price elasticity of demand for beer is about 0.9 . A government policy aimed at reducing beer consumption changed the price of a case of beer from $10 to $20 . According to the midpoint method, the government policy should have reduced beer consumption by
a. 30%. b. 40%. c. 60%. d. 74%.
To maximize profits, an unregulated natural monopolist would choose which combination of price and output in Figure 27.1?
A. P1, Q1. B. P4, Q4. C. P2, Q2. D. P3, Q3.