A monopoly produces and sells 300 units of its product for $8 per unit. If the total cost incurred by the monopoly is $1,800, determine its profit or loss
What will be an ideal response?
Profits = Total revenue - Total cost = $2,400 - $1,800 = $600.
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According to the law of supply, producers will
A) change their consumption plans when the price of a good changes. B) change their supply when the price of a good changes. C) change their production plans when the price of a good changes. D) increase their quantity supplied when the price of a good decreases. E) decrease their quantity supplied when the price of a good increases.
If the U.S. dollar increases in value relative to other currencies, how does this affect the aggregate demand curve?
A) This will move the economy up along a stationary aggregate demand curve. B) This will move the economy down along a stationary aggregate demand curve. C) This will shift the aggregate demand curve to the left. D) This will shift the aggregate demand curve to the right.
The bursting U.S. housing bubble of 2007 did not trigger an immediate recession, because
A. mortgage interest rates remained relatively low. B. Democrats in control of Congress passed new tax cuts for distressed homeowners. C. previous homeowners were able to move into apartments. D. all of the options are correct.
Long-run increases in living standards, as measured by real GDP per person, are primarily the result of increases in:
A. government budget surpluses. B. average labor productivity. C. the money supply. D. population.