If a monopolist is maximizing its profits, we know that it has:
A. maximized total revenue.
B. maximized marginal revenue.
C. minimized total cost.
D. equated marginal cost and marginal revenue.
Answer: D
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Keynesians are skeptical of the classical theory that recessions are periods of increased mismatch between workers and jobs because
A) help-wanted advertising falls during recessions. B) help-wanted advertising rises during recessions. C) workers spend a lot of time searching for work in recessions. D) people are indifferent between being employed or not.
The type of currency in circulation in the modern U.S. economy is almost entirely
A. commodity money. B. metallic money. C. fiat money. D. silver certificates.
All of the following are examples of negative effects of imposing rent control except:
A. renters spend less time searching for apartments. B. persons who get a place to live pay higher rent. C. producer surplus decreases. D. some people who would have rented apartments before rent control will not rent.
Which of the following would encourage economic growth through increases in the capital stock?
A) an increase in household saving B) a decrease in the government deficit C) a change from an income tax to a consumption tax D) all of the above