If a monopolist's marginal costs increase by $1 for all levels of output, then the monopoly price will
a. rise by $1.
b. rise by more than $1.
c. rise by less than $1.
d. not change, but profits will decrease.
c
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Assuming no other changes, if checkable deposits increase by $40 billion and currency in circulation decreases by $40 billion, the:
A. M1 money supply will decline. B. M1 money supply will not change. C. M2 money supply will decline. D. M2 money supply will increase.
Assume the watermelon industry is perfectly competitive and in long-run equilibrium with a market price of $10. If the demand for watermelons increases in this decreasing-cost industry, long-run equilibrium will be reestablished at a price
A. equal to $10. B. greater than $10. C. less than $10. D. either greater than or less than $10, depending on the number of firms that enter the industry.
Given the equation of exchange, if V is stable, an increase in M will necessarily increase:
A. The demand for money B. The price level C. Nominal GDP D. Real GDP
If Thailand is more efficient at producing fax machines and telephone answering machines than Malaysia, then Thailand enjoys a(n) _____ advantage over Malaysia in the production of these products.
Fill in the blank(s) with the appropriate word(s).