When a monopolist increases output, total revenue will:
A. increase if the price effect outweighs the quantity effect.
B. decrease if the quantity effect outweighs the price effect.
C. increase if the quantity effect outweighs the price effect.
D. increase but it will have no price effect.
C. increase if the quantity effect outweighs the price effect.
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The country of Stanley is at an above-full-employment equilibrium. Which of the following events will return Stanley to full employment?
A) an increase in government expenditures B) a decrease in the interest rate C) an increase in the money wage rate D) an increase in the quantity of money
Describe the structure of the Fed's Open Market Committee (FOMC). What is this committee's primary responsibility?
What will be an ideal response?
Assume MUX = 30 utils, MUY = 15 utils, PX = $2, and PY = $0.50 . This consumer:
a. should buy less of X and less of Y. b. is in equilibrium. c. should buy more of X and less of Y. d. should buy less of X and more of Y. e. should buy more of X and more of Y.
In order to make effective policy changes, policy makers need to know
a. where the economy is going to be six to twelve months from now. b. the magnitude of past recessions. c. Keynesian economics. d. the exact size of the current M1 money supply.