To maximize its profit, a single-price monopoly produces the amount of output so that its marginal revenue
A) equals zero.
B) equals its marginal cost.
C) exceeds its marginal cost but not necessarily by as much as possible.
D) is less than its marginal cost.
E) exceeds its marginal cost by as much as possible.
B
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Increasing opportunity cost exists
A) only in theory but not in real life. B) in the real world. C) for a country but not for an individual. D) as long as there is high unemployment. E) inside the PPF but not on the PPF.
If the wealth effect of an increase in the real wage was greater than the substitution effect of an increase in the real wage
a. the labor supply curve would slope upward. b. the labor supply curve would slope downward. c. the labor supply curve would be vertical. d. the labor demand curve would solely determine the real wage.
What advice did many analysts give to postcommunist states, particularly Russia, to boost their stagnating economies?
a. to strengthen a centralized state authority b. to ignore the invisible hand of the market c. to privatize state-owned businesses
The labels for the axes of the aggregate demand graph should be:
a. Quantity of a product on the vertical axis and the price of a product on the horizontal axis b. Real domestic output on the vertical axis and the price level on the horizontal axis c. Price of a product on the vertical axis and quantity of a product on the horizontal axis d. Real domestic output on the horizontal axis and the price level on the vertical axis