The reason an unregulated natural monopolist will produce at an economically inefficient quantity is
A) due to the fact that the monopolist will equate marginal cost with price to determine the output level.
B) due to the fact that the monopolist will equate average total cost with price to determine the output level.
C) that the price does not equal the true marginal cost of producing the good.
D) that the monopolist will produce a quantity greater than the minimum of the average total cost curve.
C
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Full-time students and prisoners are ________
A) not in the labor force B) in the labor force C) counted as discouraged workers D) counted as unemployed
For the principle of diminishing marginal returns to hold,
a. all resources must vary. b. at least one resource should remain fixed. c. only one resource should vary. d. a minimum of three input resources is necessary.
Exhibit 16-1 Money market demand and supply curves
Starting from an equilibrium at E1 in Exhibit 16-1, a leftward shift of the money supply curve from MS1 to MS2 would cause an excess:
A. demand for money, leading people to sell bonds. B. demand for money, leading people to buy bonds. C. supply of money, leading people to sell bonds. D. supply of money, leading people to buy bonds.
In Year 1, the actual budget deficit was $200 billion and the cyclically-adjusted deficit was $150 billion. In Year 2, the actual budget deficit was $225 billion and the cyclically-adjusted deficit was $175 billion. It can be concluded that fiscal policy from Year 1 to Year 2 became more:
A. Proportional B. Progressive C. Contractionary D. Expansionary