When a monopoly decreases its output and sales, the output effect works to _____ total revenue, and the price effect works to _____ total revenue
Fill in the blank(s) with the appropriate word(s).
Answer:
a. decrease
b. increase
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Suppose the market for loanable funds is in equilibrium. If the expected profit falls, the equilibrium real interest rate ________ and the quantity of loanable funds ________
A) falls; decreases B) falls; increases C) rises; increases D) rises; decreases
The Herfindahl-Hirschman Index is definitely larger in a ________ market than in a ________ market
A) monopoly; perfectly competitive B) monopolistic competitive; monopoly C) perfectly competitive; monopoly D) perfectly competitive; monopolistic competitive
Adam Smith's invisible hand refers to
A) the government's unobtrusive role in ensuring that the economy functions efficiently. B) property ownership laws and the rule of the court system. C) the process by which individuals acting in their own self-interest bring about a market outcome that benefits society as a whole. D) the laws of nature that influence economics decisions.
_______ will not cause a shift of the AS curve in a Keynesian framework.
a. Prices of inputs b. Changes in input prices c. Changes in output prices d. Changes in inputs