If the monopolist charges a high price, he will sell:
A. as many as he supplies to the market at that price.
B. more than demanders want to buy at that price.
C. less than if he were to charge a lower price.
D. more than if he were to charge a lower price.
C. less than if he were to charge a lower price.
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For many years the U.S. government imposed quotas on cheap, Middle Eastern oil imports. The U.S. consumer consequently paid $3 billion more per year for oil products. A likely rationale for such a policy is
A. people in the oil industry deserved the transfer. B. conservation. C. one cannot be dependent on foreign supplies of so crucial a resource. D. American oil was of higher quality and deserved a higher price.
Public goods are I. nonexcludable. II. nonrival
A) I only B) II only C) both I and II D) neither I nor II
In the standard model of a monopoly union bargaining with the firm, it is typically assumed that
A. union leadership disregards the preferences of the rank and file. B. the union's sole objective is to increase the wage. C. unions and management secretly negotiate on the behalf of stockholders. D. unions never lead to an efficiency loss. E. unions are willing to trade off some amount of employment for higher earnings.
Saving by households
A) decreases when the real interest rate rises. B) increases when the real interest rate rises. C) increases when the real interest rate falls. D) is unaffected by the real interest rate.