If antitrust legislation is successful, then the monopolistic firm will
A. increase output and charge a higher price than before.
B. decrease output and charge a higher price than before.
C. decrease output and charge a lower price than before.
D. increase output and charge a lower price than before.
Answer: D
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Suppose that Congress allocates $5 billion to an "energy-efficient appliance rebate" program. It also raises taxes by $5 billion to keep the deficit from growing. If the marginal propensity to consume is 0.8, what is the effect on equilibrium GD
A) GDP does not change. B) GDP increases by $5 billion. C) GDP increases by $25 billion. D) GDP increases by $4 billion.
The aggregate supply curve indicates the
a. relationship between prices and the aggregate quantity of goods and services purchased by consumers, investors, governments, and foreigners (net exports). b. relationship between prices and the natural rate of unemployment. c. relationship between the real wage rate and the quantity of labor supplied by households. d. quantity of goods and services producers will supply at different price levels.
When economists attempt to predict the spending patterns of U.S. households, they will typically view the _________ as a primary determining factor that influences the individual consumption choices that each will make.
A. national average spending level B. national average savings level C. income level of each household D. nation's perennial political debate
In a restaurant we can observe people consuming coffee, tea, and juices. All are priced the same. If Ann consumes coffee and Bob consumes a juice, we can conclude that
A. Ann likes coffee more than Bob does, and Bob likes juices more than Ann does. B. Carl, another restaurant guest, will be drinking tea. C. the utility Ann receives from coffee consumption equals the utility that Bob receives from consuming juices. D. Ann derives more utility from coffee than from tea or juices, and Bob derives more utility from juices than from tea or coffee.