Economists note that over most periods, the inflation level in prices is roughly similar to the inflation level in wages, and so they reason that on average, over time, people's economic status is not greatly changed by inflation
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Figure 7-1. Suppose the government allows imports of leather footwear into the United States. What will be the quantity demanded?
A) Q0 B) Q1 C) Q2 D) Q2 - Q0
The ability of a monopoly to charge a price that exceeds marginal cost depends on
A) the price elasticity of supply. B) price elasticity of demand. C) slope of the demand curve. D) shape of the marginal cost curve.
U.S. antitrust laws view monopolies as undesirable because
A) monopolies restrain trade and promote inefficiencies. B) monopolies create inferior products. C) monopolies produce only capital goods. D) monopolies produce only cheap, low quality goods.
How does a manufacturer set his or her total output to maximize profit?
(A) Set production so that total revenue plus costs is greatest. (B) Determine the largest gap between total revenue and total cost. (C) Determine where marginal revenue and profit are the same. (D) Set production at the point where marginal revenue is smallest.