Refer to the graph shown. Assuming that this monopolist maximizes profit, the marginal cost of its last unit of output will be:
A. $10.
B. $12.
C. $16.
D. $ 8.
Answer: D
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A. the income effect. B. an inferior good. C. the rationing function of prices. D. the substitution effect.
Monetarists argue that an exogenous increase in investment spending is likely to be offset by a decrease in
A) the money supply. B) interest rates. C) government spending. D) consumption.
The problems of inflation are caused primarily by: a. greed on the part of sellers
b. uncertainty about inflation. c. too much incentive to lend money. d. greed on the part of union leaders. e. governments' actions to reduce the effects of inflation.
The ________ phase of the business cycle follows a recession
a. recession b. peak c. expansion d. trough