A monopolist will ________ if marginal revenue is negative.
A. increase production
B. not produce
C. maintain its current production level
D. shut down
Answer: B
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Which one of the following would cause an increase in the supply of cardboard?
A) a decrease in the demand for cardboard B) an increase in the price of cardboard C) an increase in taxes applied to cardboard producers D) an improvement in the technology used to produce cardboard
Comparing firms in perfectly competitive markets to monopoly firms, which results in a deadweight loss?
If there were an increase in the number of bank failures, we should expect the amount of excess reserves in the banking system to:
A. increase. B. decrease since failing banks lost theirs. C. decrease. D. not change.
River City has a working age population of 20 million. Of those, 11 million are employed and 1 million are unemployed. The unemployment rate is ________ and the participation rate is __________.
A. 5%; 60%. B. 5%; 55%. C. 8.3%; 55%. D. 8.3%; 60%.