In general, economists assume that firms
A. maximize economic profit.
B. maximize sales.
C. maximize revenue.
D. maximize accounting profit.
Answer: A
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"Policy ineffectiveness" refers to the hypothesis that monetary and fiscal policy actions that change aggregate demand will
a. neither affect output nor employment even in the short run. b. affect output and employment in both the short run and long run. c. affect output but not employment in the short run. d. not affect output but will affect employment in the long run.
The measure of what households receive after personal income tax is deducted is
A. National income. B. Personal income. C. Disposable income. D. Gross domestic product.
Because of producer?producer rivalry, the price will tend to:
A. rise up to the maximum price the consumers are willing and able to pay. B. be the same as the competitive price. C. be driven to a lower price. D. be the same as the monopoly price.
Under the cartel, the individual firm's economic profit is (assuming it obeys its quota) 
Figure 42.2
A. zero. B. the larger of the dashed-line boxes. C. the smaller of the dashed-line boxes. D. between the size of the two dashed-line boxes.