Sizable economic profits can persist over time under monopoly if the monopolist
a. produces that output where average total cost is at a maximum.
b. is protected by barriers to entry.
c. operates as a price taker rather than a price maker.
d. earns revenues that exceed variable costs.
b
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An increase in the money supply, other things equal, shifts the ________ curve to the ________
A) IS; right B) IS; left C) LM; left D) LM; right
Answer the following statement(s) true (T) or false (F)
1. It is wise to purchase an artist's work when it is expected to appreciate in value, whether or not you like it. 2. Treasury bills are sold at face value and buyers received annual interest payments from the government. 3. The value of a productive asset is equal to the present value of the stream of dividends that it produces. 4. Deficit spending by the government is unwise, because taxpayers receive nothing of value when their taxes are used to make interest payments. 5. Without inflation the real interest rate is always greater than the nominal interest rate.
The quantity of real GDP supplied depends on the # randomize
A. Level of aggregate demand. B. Quantity of capital, bonds, and stocks. C. Quantity of labor, the quantity of capital, and the state of technology D. price level, the unemployment rate, and the quantity of government expenditures on goods and services
How does an aggregate demand curve differ from an individual demand curve?
a. An aggregate demand curve shows the quantity demanded at various prices, whereas an individual demand curve shows the quantity demanded at different price levels. b. An aggregate demand curve deals with particular goods, whereas an individual demand curve shows the quantity demanded by a single nation. c. An aggregate demand curve deals with the economy as a whole, whereas an individual demand curve shows the quantity demanded by one person. d. An aggregate demand curve shows the changes in prices of related goods, whereas an individual demand curve shows the changes in economy-wide prices.