Suppose a monopoly is producing its profit-maximizing output level. Now suppose the government imposes a lump-sum tax on the monopoly, independent of its output
As a result the monopolist will increase the price of its product to cover its higher cost.
Indicate whether the statement is true or false
FALSE
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The dates of the "official" peaks and troughs of business cycles in the United States are determined by the:
A. Congressional Budget Office. B. Federal Reserve Board. C. Council of Economic Advisers. D. National Bureau of Economic Research
Refer to Figure 4-8. Suppose that instead of a rent ceiling, the government imposed a price floor of $2,000 per month for apartments. What is the value of the portion of consumer surplus transferred to producers as a result of the price floor?
A) $40,000 B) $100,000 C) $125,000 D) $140,000
Can macroeconomic policy be used systematically to create unanticipated inflation?
A) No, according to Keynesian economists. B) Yes, according to classical economists. C) No, according to classical economists. D) Yes, according to Keynesian economists, if Ricardian equivalence holds.
In the derivation of TVC, you
A. subtract the amount of the vertical intercept of the TC down from the TC at each quantity. B. move the TC to the right a fixed distance. C. the minimum-slope ray out of the origin to the TC. D. the vertical intercept of the TC and draw a horizontal line.