Refer to the graph shown. If this monopolist were forced to set price equal to marginal cost, in the long run it probably would produce:
A. 400 units of output.
B. 0 units of output.
C. 200 units of output.
D. 450 units of output.
Answer: B
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Two studies published in the New England Journal of Medicine link the risk of breast cancer to alcohol consumption. Young women who have nine drinks per week were reportedly 150 percent more likely to develop breast cancer. Considering the market for alcohol, an economist would predict a movement
A. up the demand curve as quantity demanded falls. B. up the supply curve as the demand curve shifts. C. down the supply curve as the demand curve shifts. D. down the demand curve as quantity falls.
In the money market, an excess supply of money is equivalent to an excess supply of bonds
Indicate whether the statement is true or false
Federal taxes increased in 1932, 1935 and 1937, and Social Security taxes were imposed in 1937 . Which group is credited for these tax increases during the Great Depression?
(a) Classical economists (b) Keynesian economists (c) Monetarists (d) Government officials and special interest groups
One of the basic facts of life is that people must make choices as they try to attain their goals. This unavoidable fact comes from a reality an economist calls
A. economics. B. the market. C. scarcity. D. rationality.