Use the following graph to answer the next question.
If the industry operates as a pure monopoly, the profit-maximizing quantity of output would be ________.
A. a level that is not labeled in the graph
B. 195
C. 160
D. 90
Answer: D
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The current account deficits incurred by the United States in the 1990s and early 2000s were caused, in the opinion of many economists, by
A) federal budget deficits. B) a sharp decline in private saving. C) "flight to quality" as foreign investors favored U.S. investments. D) Both B and C are correct.
According to Linder, the gains from international trade come about because consumers are exposed to
A) a greater variety of goods. B) increasing returns to scale. C) imperfect competition. D) None of the above.
Leverage refers to a firm's
a. output to employment ratio. b. revenue to cost ratio. c. debt to equity ratio. d. common stock to preferred stock ratio.
The key feature due to which unexpected inflation decreases the unemployment rate is that:
a. expectations are formed irrationally. b. reservation wages of workers are fixed. c. workers behave irrationally. d. firms are greedy. e. government policy is time consistent.