"A monopolist refers to any firm that is large in size." Do you agree or disagree? Why?
What will be an ideal response?
Disagree. A monopolist does not have to be large in size. Regardless of its size, a monopolist in a market is the single supplier of a good or service for which there is no close substitute.
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Assuming that resources are specialized, the opportunity cost of an item increases as the production of it rises. This implies that firms will produce more as
A. the price increases. B. the price decreases. C. the opportunity cost is greater than the price. D. government asks firms to produce more. E. the income of buyers increases.
An income tax system is ________ if marginal tax rates increase as income increases
A) efficient B) progressive C) equitable D) regressive
When expansionary monetary policy pushes real interest rates to an artificial low, the Austrian view of the business cycle predicts this will lead to
a. an increase in aggregate demand and a lengthy expansion in real output. b. a recession, followed by a strong and lengthy expansion in real output. c. malinvestment during an economic boom, followed by a recession. d. malinvestment during a temporary recession, followed by a strong and lengthy economic boom.
In which of the following instances is the effect on equilibrium price (whether it rises, falls, or remains unchanged) dependent on the magnitude of the shifts in supply and demand?
What will be an ideal response?