Which of the following is an example of expansionary monetary policy?
A) Open market purchases of bonds
B) A decrease in government spending
C) A decrease in taxes
D) An increase in interest rates
A
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Which of the following observations is not true of a budget line?
A. It indicates what choices are available to the consumer. B. It is a curve of constant expenditure. C. Its slope reports the market terms on which the consumer can trade one good for another. D. It helps examine the consumer’s preferences.
Firms that have several plants that produce the same or related products are said to be:
A) horizontally integrated. B) vertically integrated. C) conglomerates. D) cooperatives.
The existence of alternative uses of a resource implies that it is:
A) free. B) scarce. C) expensive. D) plentiful.
If a pure monopolist is operating in a range of output where demand is elastic:
A. it cannot possibly be maximizing profits. B. marginal revenue will be positive but declining. C. marginal revenue will be positive and rising. D. total revenue will be declining.