Jordan has the following assets and liabilities:Two cars$10,000House$200,000Mortgage$100,000Cash$1,000Car loans$3,000Checking account balance$2,000Credit card balance$1,000 Suppose that Jordan wins $100,000 in the lottery. If he uses that money to pay off his mortgage, his wealth would ________; if he puts that money in his checking account, his wealth would ________;
A. increase to $209,000; increase to $209,000
B. increase to $207,000; not change
C. increase to $209,000; not change
D. not change; increase to $207,000
Answer: A
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A single-price monopolist will produce at the point where
A) MR = 0. B) MR = P. C) MR = MC. D) P = MC.
Which of the following is considered part of M2?
a. Savings deposits. b. Money market mutual fund shares. c. Small time deposits of less than $100,000. d. All of these.
When are most economists less concerned or even quite supportive of larger budget deficits?
a. prior to an anticipated recession b. during and immediately after a severe recession c. during economic expansion d. several years after economic recovery
In the short run, a monopoly should shut down whenever
a. marginal revenue exceeds marginal cost b. price is less than average total cost c. total revenue is less than total cost d. price exceeds the ratio of marginal cost to average cost at the optimal output e. price is less than average variable cost everywhere