Relative to a competitive market equilibrium, the profit maximizing quantity chosen by a monopolist will result in a deadweight loss because:
A. the monopolist will produce at a quantity lower than the competitive equilibrium.
B. the monopolist will produce at a quantity higher than the competitive equilibrium.
C. the monopolist will charge a price lower than the competitive equilibrium.
D. the monopolist will keep producing at a quantity even though the MR < MC.
Answer: A
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The factor that ultimately determines the change in the stock of capital, the level of real wages, and the output of an economy is
A) GDP. B) the labor force. C) the unemployment level. D) net investment.
When an economy experiences a recession there is
A) a rightward shift of the short-run Phillips curve. B) a leftward shift of the short-run Phillips curve. C) no change in the short-run Phillips curve. D) a downward movement along the short-run Phillips curve. E) an upward movement along the short-run Phillips curve.
In the twelfth century, the bulk of world population lived in:
a. Asia b. Africa c. Europe d. The European offshoots e. none of the above
Refer to the following indifference map for a consumer who has an income of $48 to spend on goods X and Y and the market prices of X and Y are both $4:
After the price of good X increases to $12 while the price of good Y remains $4, how many units of good X would be purchased?
A. 0 B. 2 C. 4 D. 8 E. 12