You are hired as a production analyst at Monopoly-R-Us and you estimate that, at current output, demand is inelastic and marginal cost is positive. You advise your superiors that they can increase profit by
a. raising price until demand becomes unit elastic
b. raising price into the elastic range
c. lowering price until demand becomes unit elastic
d. lowering price into the elastic range
e. reduce output without changing price
B
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Why is the net gain from international trade positive?
What will be an ideal response?
Rationing through the price system
A) leads to an inefficient use of available resources. B) leads to high prices. C) works only with government interference. D) leads to an efficient use of available resources.
Economics is primarily concerned with the study of: a. problems such as poverty and unemployment
b. limited desires pursuing unlimited resources. c. production and distribution of goods in a world of unlimited resources. d. production and distribution of goods in a world of limited resources.
If inflation is highly volatile, money is:
A. less valuable because its unit of account function is reduced. B. more valuable because its unit of account function is reduced. C. more valuable because you need more of it. D. less valuable because there is less of it.