The behavior of the monopolistic firm:
a. maximizes the benefits to consumers, given the resources available to the economy.
b. reduces output in order to raise prices in the short-term
c. results in excess capacity and inefficiency.
d. both b and c
d
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Suppose you pay $290.00 for a new tablet computer. This is an example of
A) money as a store of value. B) money as a standard of deferred payment. C) barter. D) money as a medium of exchange.
The Great Depression:
A. ended a few months after the stock market crash of 1929. B. occurred only in the United States. C. resulted in the development of microeconomics. D. was a period of low production and high unemployment.
In a true market economy, how many people decide what will be produced?
a. a small handful of government officials b. one overall leader c. millions of consumers and producers d. a few thousand corporate managers
The absolute value of the marginal rate of substitution is a measure of
A. the slope of a budget constraint. B. the relative price of two goods. C. income effect of a price change. D. the slope of an indifference curve.