A monopolist will earn economic profits when
A. AVC is a minimum.
B. ATC equals MC.
C. ATC lies below the demand curve.
D. ATC lies above the demand curve.
Answer: C
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Use the figure below to answer the following question. 
A movement along the supply schedule from point y to point x is associated with
A. diminishing marginal utility. B. diminishing marginal product. C. increasing marginal product. D. increasing marginal utility.
When a government has a large budget deficit, it must issue government bonds to finance the deficit. Explain if it matters for the rate of inflation if the government sells the bonds to the public or sells the bonds to the central bank?
What will be an ideal response?
In a functioning market, people will buy a good up to the point where:
A. the marginal benefit of each unit is equal to the marginal cost of each unit. B. the total benefit of the good is equal to the total cost of the good. C. the marginal benefit of the last unit is equal to the marginal cost of that unit. D. they can no longer afford it.
Which statement is true?
A. GDP can never be greater than NDP. B. NDP can never be greater than GDP. C. GDP and NDP are always equal. D. None of the statements are true.