Answer the following statement(s) true (T) or false (F)
1. A monopoly's supply curve is the portion of its marginal cost curve that lies above its average variable cost curve.
2. A simple profit-maximizing monopoly will choose its price and quantity from the elastic portion of its demand curve.
3. Unlike perfectly competitive firms, monopolies do not produce where marginal revenue equals marginal cost, thus leading to deadweight loss.
4. In practice, many monopolists are required to earn zero economic profit.
5. If a natural monopoly charged the competitive price, it would earn a negative profit.
1. False
2. True
3. False
4. True
5. True
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Refer to Table 8-6. Consider the table of production and price statistics for a small economy in 2013. If the economy only produces the four goods listed below, what is GDP for 2013?
A) $428,000 B) $267,000 C) $24,000 D) $1,424
Would a profit-maximizing firm sell at a price where demand is inelastic? Explain
Which of the following statements about recessions is true?
a. An old rule of thumb defining recession is two consecutive quarters of falling nominal GDP. b. Recessions occur at regular intervals and last standard amounts of time. c. There is no ironclad rule for the declaration of recessions. d. Recessions are associated with low unemployment and high income.
In a simple linear regression model, wage = 
+
data-mathml="%3Cmath%20style%3D%22font%2Dfamily%3A%27Times%20New%20Roman%2C%20serif%27%22%20xmlns%3D%22http%3A%2F%2Fwww%2Ew3%2Eorg%2F1998%2FMath%2FMathML%22%3E%3Cmstyle%20mathsize%3D%2215px%22%3E%3Cmsub%3E%3Cmi%3E%26%23946%3B%3C%2Fmi%3E%3Cmn%3E1%3C%2Fmn%3E%3C%2Fmsub%3E%3C%2Fmstyle%3E%3C%2Fmath%3E" src="@@PLUGINFILE@@/ppg__cognero__Ch_02_The_Simple_Regression_Model__media__1bf590d6-a2ba-4841-b79e-97ddde25877f.PNG" style="vertical-align: middle;" />male + u, where male is a binary variable (1 if a person is male, and 0 otherwise), is the difference in the average wage between males and non-males. Answer the following statement true (T) or false (F)