For a monopoly, when the price effect outweighs the quantity effect of increased production:
A. the demand must be price inelastic.
B. marginal revenue must be increasing.
C. total revenues will increase.
D. All of these statements are true.
Answer: A
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Community-wide poverty:
A. is nonexistent in the developed world. B. creates problems beyond those faced by poor individuals living in wealthier communities. C. only creates problems in less wealthy countries. D. None of these is true.
What type of relationship do business taxes have with respect to Investment spending?
A. Negative B. Positive C. Secondary D. Constant
Megan’s country has neglected its infrastructure. What impact will this most likely have on economic growth?
a. It will encourage economic growth. b. It will hinder economic growth. c. It will have little impact on economic growth. d. Its impact on economic growth depends on the size of the economy.
During a recession, we generally see
a. real GDP rising and unemployment rising b. real GDP falling and unemployment rising c. real GDP rising and inflation rising d. real GDP rising and inflation staying stable