The social cost of a monopoly is equal to its
a. economic profit.
b. fixed cost.
c. deadweight loss.
d. variable cost.
c
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Which of the following would NOT affect a good's price elasticity of demand?
A) the ease of substitution between goods B) the cost of producing the good C) the number of substitute goods available D) the proportion of one's budget spent on an item
Assume that black beans and rice are staples in the diet of one particular family. How could you tell if these goods were complements, substitutes, or unrelated goods?
a. If the price of black beans rose and the consumption of rice remained the same, they would be substitutes. b. If the price of black beans rose and the consumption of rice increased, they would be substitutes. c. If the price of black beans rose and the consumption of rice decreased, they would be substitutes. d. If the price of black beans rose and the consumption of both goods remained the same, they would be complements. e. There is no way to determine whether these goods are complements, substitutes, or unrelated goods.
Why are real interest rates more important than nominal interest rates with regard to analyzing the supply and demand of loanable funds?
In general, the multiplier effect applies to changes in government spending but not to changes in taxation
a. True b. False Indicate whether the statement is true or false