The demand curve of a monopolist is
a. identical to the marginal cost curve.
b. downward sloping and above the marginal revenue curve.
c. downward sloping and below the marginal revenue.
d. elastic because of a recognized interdependence with other firms.
B
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In the market for a normal good, what is the ultimate market reaction of suppliers to an increase in the incomes of consumers?
A) Suppliers do not react, because a change in income shifts the demand curve, not the supply curve. B) The supply curve shifts to the right. C) The supply curve shifts to the left. D) Quantity supplied increases as the equilibrium moves along the supply curve due to a rise in the demand.
If the cross price elasticity between Goods A and B equals 0.7, then a reduction in the price of Good B will:
a. increase the demand for Good A and increase Good A's price as a result. b. increase the demand for Good A and decrease Good A's price as a result. c. decrease the demand for Good A and increase Good A's price as a result. d. decrease the demand for Good A and decrease Good A's price as a result.
As a result of Lehman's collapse, real GDP first began to fall in
a. the fourth quarter of 2007. b. the second quarter of 2008. c. the third quarter of 2008. d. the first quarter of 2009.
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the nominal exchange rate and the monetary base in the context of the Three-Sector-Model? a. The nominal exchange rate remains the
same and monetary base rises. b. The nominal exchange rate falls and monetary base falls. c. The nominal exchange rate remains the same and monetary base falls. d. The nominal exchange rate and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.