In the long run, a profit-maximizing monopolist
A. earns zero economic profit.
B. produces the same amount as a perfectly competitive industry.
C. receives a higher price for his output than a perfectly competitive firm.
D. produces at the output level that minimizes his long-run average total cost.
Answer: C
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If there is a change in the U.S. endowment of factors of production, then there would be
A) shifts in just SRAS. B) a movement along the SRAS curve. C) a shift in both LRAS and SRAS. D) a shift in just LRAS.
Congress just received a report that the economy began a downturn five months ago. They vote to implement an expansionary policy to address it, but they are already five months too late to completely stop the damage. This is an example of ______.
a. an impact lad b. a crowding-out lag c. a recognition lag d. an implementation lag
Which question is an illustration of a microeconomic question?
A. Is the purchasing power of the dollar higher or lower today than it was in 2005? B. Is the quantity of wine purchased in one year dependent upon the price of wine? C. Does government spending influence the total level of employment in the economy? D. Is capitalism superior to socialism?
Firms that face downward-sloping demand curves for their output in the product market are called
A) price takers. B) price dictators. C) monopolists. D) price makers.