Individuals will increase their saving as
A) the interest rate falls. B) the interest rate increases.
C) the rate of unemployment increases. D) business investment falls.
B
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The gross national product of a country for a certain year was $340,000
If the contribution of its factors of production in the production of various goods and services in other countries was worth $140,000 and the contribution of foreign factors of production in the production of goods and services in this country was worth $50,000, the gross domestic product of the country for that year was ________. A) $430,000 B) $160,000 C) $480,000 D) $250,000
A characteristic of monopolistic competition is
A) product differentiation. B) a high capital-output ratio. C) a low ratio of fixed costs to variable costs. D) the absence of advertising.
Because the monopolist doesn't pay attention to the willingness to pay of inframarginal consumers:
A. there can sometimes be a difference between what level of product quality is profitable for the monopolist and what level of product quality maximizes aggregate surplus. B. the monopolist will choose the optimal level of product quality. C. the quantity chosen by the monopolist will sometimes maximize aggregate surplus. D. there can never be a difference between the marginal cost of higher product quality and the marginal value to consumers of higher product quality.
The figure below shows a situation where the producers of Good X are forming an international cartel. Here, MR = Marginal Revenue, and MC = Marginal Cost. The cartel will set a monopoly price for its output.
By how much would the consumer surplus fall after the formation of the cartel?
A. $5 billion B. $50 billion C. $15 billion D. $20 billion