A monopolist is currently maximizing profits. In addition, if P > ATC > MC, then the monopolist
A. is covering total fixed costs but not total variable costs.
B. is covering total variable costs but not total fixed costs.
C. just breaks even.
D. earns positive economic profits.
Answer: D
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You purchased two stocks that are perfectly negatively correlated
A) Your portfolio is well diversified, so you should face no risk whatsoever. B) Even though you diversified the idiosyncratic risk away, your portfolio is still affected by systemic risks like a stock market crash. C) Even though you diversified the systemic risk away, your portfolio is still affected by idiosyncratic risks like a stock market crash. D) Your portfolio is not diversified; thus you face no systemic risk.
The downward-sloping aggregate demand curve is partly due to the:
A. positive relationship between the price level and government spending. B. positive relationship between the price level and net exports. C. negative relationship between the price level and net exports. D. negative relationship between the price level and government spending.
If total spending is greater than current output, GDP will rise.
Answer the following statement true (T) or false (F)
If two goods are considered substitutes and the price of one decreases, the other good's
A. demand curve will shift to the right. B. demand curve will shift to the left. C. supply curve will shift to the left. D. supply curve will shift to the right.