Monopolies charge
a. the highest possible price
b. a price determined by cost
c. the price consistent with the output level where total revenue equals total cost
d. the price associated with the quantity at which marginal revenue equals marginal cost
e. the price at which total revenue equals average total cost
D
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Legislation setting high minimum wage rates benefits
A) many people receiving wages far above the minimum by reducing competition from unskilled workers. B) no group in the economy, but is nonetheless widely supported out of ignorance. C) only people who were previously receiving less than the legal minimum. D) primarily teenagers and unskilled workers. E) the whole economy by pushing up average income.
If high-level executives of a company award themselves sizable bonuses even though the firm they manage is making losses and performing poorly, this event is most likely to arise because of
a. the law of diminishing marginal returns. b. competition among business firms for high-level executives. c. economies of scale. d. the principal-agent problem.
Recall the Application the Joint Committee on Taxation and how Congress accounts for the dynamic effects of its policies to answer the following questions.According to the Application, the Trump Tax cuts would have increased the deficit by ________ billion, without taking into account the dynamic effects.
A. $1456 B. $1591 C. $286 D. $641
The rate of unemployment when the economy is fully employed is called the
A. full-employment rate of unemployment. B. natural rate of unemployment. C. frictional rate of unemployment. D. structural rate of unemployment.