A monopolist will operate in the short run if which of the following is above average variable cost?
a. Marginal cost.
b. Marginal revenue.
c. Price.
d. All of these.
c
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If the economy spends 80 percent of any increase in real GDP, then an increase in investment of $1 billion would result ultimately in an increase in real GDP of:
A. $0. B. $0.8 billion. C. $1.0 billion. D. $5.0 billion.
If the minimum wage is set too high, in some labor markets we can expect to see:
A. a shortage of labor. B. an increase in on-the-job training. C. a surplus of labor. D. a decline in wage costs.
The managers of government bureaucracies have an incentive to _____
a. maximize the size of their budgets b. minimize the size of their staff c. maximize the profits from their bureaus d. minimize rent-seeking
A bank has $500,000 in deposits and $475,000 in loans. It has loaned out all it can. It has a reserve ratio of
a. 2.5 percent. b. 5 percent. c. 9.5 percent. d. 25 percent.