A relative price is:
A. the price of a specific good in comparison to the prices of other goods and services.
B. the percentage change in a price index such as the CPI.
C. the rate of inflation.
D. a measure of overall prices at a particular point in time.
Answer: A
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A profit-maximizing monopolist will never produce at an output level where: a. demand is elastic
b. it suffers economic losses in the short run. c. demand is inelastic. d. marginal cost is less than average total cost.
A decrease in the reserve requirement will cause a decrease in the money multiplier.
a. true b. false
Suppose that Dave has $200 to spend per week and he buys only magazines and pizza. The price of a pizza is $10 and the price of a magazine is $5. What is the maximum amount of pizza Dave can buy each week?
A) 40 B) 20 C) 200 D) 60
Historical note: Until 1975, the United States' balance of trade was characterized by
a. moderate deficits b. huge deficits c. moderate surpluses d. high volatility, that is, dramatic ups and downs (positives and negatives) e. zero balance or equilibrium