When a firm has monopoly power, it
A) hires fewer workers because its marginal revenue lies below the demand curve.
B) hires more workers because its marginal revenue lies below the demand curve.
C) hires fewer workers because its marginal revenue lies above the demand curve.
D) hires more workers because its marginal revenue lies above the demand curve.
Answer: A
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The typical relationship between inflation and unemployment is
A) unemployment changes do not directly lead to changes in inflation, but inflation changes may cause changes in unemployment. B) as unemployment falls, inflation increases. C) as unemployment falls, nothing happens to inflation. D) as unemployment falls, inflation falls.
When the purchase price of an asset is less than its sale price, then there is a
A) budget deficit. B) corporate income tax. C) capital gain. D) capital loss.
A benefit of a monopoly is
a. efficient production. b. decreasing long-run marginal costs. c. profit that can be invested in research and development. d. All of the above are correct.
The Federal Reserve Board of Governors
A. serves at the pleasure of the president similar to other cabinet positions. B. reports directly to Congress and is controlled by Congress. C. consists of 12 members, one from each district bank. D. is structurally independent of the executive and legislative branches of the federal government.