Graphically, the marginal revenue curve of a monopolist:
a. will sometimes lie below the demand curve of the monopolist.
b. will always lie below the demand curve of the monopolist.
c. is the same as the demand curve of the monopolist.
d. will equal ?1 when the elasticity of demand is unitary.
b
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The revenue received from the sale of an additional unit of a product
A) is called a net gain. B) is a marginal benefit to the firm. C) is called profit. D) is called gross sales.
One part of the supply-side argument is that
A) lower marginal tax rates are required to induce Congress to reduce government spending. B) lower marginal tax rates can increase total tax revenues. C) the marginal tax rate should be set at 50 percent. D) the relevant aggregate supply curve is close to horizontal.
After the year 2000 . the FOMC changed some of its operating procedures. In particular, it stopped setting:
a. explicit interest rates for commercial banks to charge. b. explicit ranges for money growth targets. c. explicit number of government bonds to be bought and sold. d. standardized real GDP targets. e. explicit numbers for the targeted natural rates of unemployment.
The example of an inflationary gap in 2006-2007 suggested that the economy adjusts
a. rapidly to inflationary gaps by lowering prices. b. rapidly to inflationary gaps by raising prices. c. slowly to inflationary gaps by lowering prices. d. slowly to inflationary gaps by increasing inflation.