Assuming no economies of scale and identical costs, if the firms in a purely competitive industry were replaced by a profit-maximizing monopolist, the likely result would be:
A. an increase in price and reduced output.
B. an increase in price and unchanged output.
C. an increase in both price and output.
D. unchanged price and reduced output.
Answer: A
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If there is an exogenous increase in investment spending, Monetarists argue that there would be little or no effect on real output because the interest rate would __________,
investment would __________, saving would __________, and consumption would __________. A) decline; increase; increase; decrease B) decline; increase; decrease; increase C) rise; decrease; decrease; increase D) rise; decrease; increase; decrease
A currency appreciation will be most likely to
a. reduce net exports and therefore increase aggregate demand. b. raise net exports and therefore decrease aggregate demand. c. reduce net exports and therefore decrease aggregate demand. d. raise net exports and therefore increase aggregate demand.
If a pharmaceutical company discovers a new drug and successfully patents it, patent law gives the firm
a. partial ownership of the right to sell the drug for a limited number of years. b. partial ownership of the right to sell the drug for an unlimited number of years. c. sole ownership of the right to sell the drug for a limited number of years. d. sole ownership of the right to sell the drug for an unlimited number of years.
In a monopsony labor market, imposition of a minimum wage will
a. reduce employment b. increase unemployment c. cause employers to actually reduce wages d. reduce the number of people looking for work e. none of the above