Assuming that firms maximize profits, how will the price and output policy of an unregulated monopolist compare with ideal market efficiency?
a. The output of the monopolist will be too large and the price too high.
b. The output of the monopolist will be too small and the price too low.
c. The output of the monopolist will be too small and the price too high.
d. The price will be too high, but the impact of monopoly on the output is indeterminate.
C
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Under current tax law individuals do not pay taxes on health insurance benefits they receive from their employers. As a result,
A) individuals are encouraged to want generous health coverage that reduces their incentives to cut costs. B) the quality of health care provided is less than it would be if benefits were taxed. C) politicians are encouraged to raise income and payroll taxes. D) the federal government spends more than it receives in tax revenue.
Fred Ramirez is a farmer who charts the relationship between number of acres planted in corn and number of bushels of corn harvested. Which marginal concept can Fred measure with this data?
a. marginal utility b. marginal product c. marginal cost d. marginal revenue product e. marginal factor cost
Contractionary fiscal policies used to reduce the deficit in the 1990s did not hurt the economy because fiscal and monetary policies were well coordinated at that time
a. True b. False Indicate whether the statement is true or false
The source of hyperinflations is primarily
a. lower output growth. b. continuing declines in velocity. c. increases in money-supply growth. d. continuing increases in money demand.