Suppose a monopolist faces the following demand curve.
If you were to draw the monopolist's marginal revenue curve, it would:
A. lie on top of the demand curve.
B. have a slope equal to the reciprocal of the slope of the demand curve.
C. intersect the vertical axis at $35.
D. intersect the horizontal axis at 35.
Answer: D
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A political system that promotes the free and open exchange of ideas:
A. will not have well-defined property rights. B. slows the development of new technologies and products. C. is detrimental to economic growth. D. increases average labor productivity.
The price of peaches goes up and I observe you buying fewer strawberries. Which of the following is consistent with this observation:
A. Strawberries are inferior and peaches are normal. B. Strawberries are normal and peaches are inferior. C. Both strawberries and peaches are inferior. D. Both (a) and (b). E. Both (a) and (c). F. Both (b) and (c). G. All of the above.
Australia has one of the most heavily subsidized agricultural sectors as a percentage of domestic GDP
Indicate whether the statement is true or false
The price system takes into account consumer preferences in the distribution of goods and services
a. True b. False Indicate whether the statement is true or false