Under what conditions might a monopoly lose money?
Any firm could incur losses if demand is weak and/or costs are high.
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A benefit-based standard is one that
a. considers the benefits balanced with the costs of that standard b. maximizes the marginal external benefit (MEB) of the standard c. is set to the point at which MEB is zero d. none of the above
Which of the following was the fastest-growing financial intermediary of the 1970s?
A) commercial banks B) credit unions C) finance companies D) money market mutual funds
Economists who are skeptical of hysteresis in Europe during the 1980s and 1990s cite all of the following as reasons for persistently high unemployment in Europe EXCEPT
A) generous unemployment benefits. B) restrictions on firms' ability to hire and fire workers. C) the existence of an ongoing recession. D) high tax rates.
If the simple spending multiplier is 8, the marginal propensity to consume is _____
a. 1/8 b. 1/4 c. 4/5 d. 7/8 e. 8