When a monopolist increases the number of units it sells, there are two effects on revenue. They are the
a. demand effect and the supply effect.
b. competition effect and the cost effect.
c. competitive effect and the monopoly effect.
d. output effect and the price effect.
d
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The Hatfields and the McCoys both earn $50,000 per year in real terms in the labor market, and both families are able to earn a 5% real interest rate on their savings. In the year 2010, both families began to save. The Hatfields saved 8% of their income each year; the McCoys saved 10%. In 2010, the Hatfields consumed ________ more than the McCoys; in 2011, the Hatfields consumed ________ than the McCoys.
A. $1,000; about $960 less B. $1,000; about $960 more C. $2,000; about $960 more D. $2,000; about $960 less
Refer to Table 11.1. If exports decrease by 30, what is the new equilibrium level of output?
A) 1,700 B) 2,300 C) 6,800 D) 9,200
If consumers elect to postpone consumption so they can have a more enjoyable future, the supply of loanable funds would increase and the market rate of interest would fall
a. True b. False
Which of the following is best explained with behavioral economics rather than traditional economics? a. How people purchase apples from a grocery store
b. How people make tradeoffs between labor and leisure c. How firms choose prices to maximize profits d. How people tend to be overconfident in certain situations