What is the relationship between marginal revenue and average revenue for a monopolist and is it the same for a perfect competitor?
What will be an ideal response?
Average revenue is equal to price for any firm but for a monopolist, marginal revenue is always less than price and therefore marginal revenue is less than average revenue. For a perfect competitor, marginal revenue is equal to price.
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When a country allows trade and becomes an importer of goods everyone benefits
a. True b. False Indicate whether the statement is true or false
In the short-run macro model, if GDP = $5 trillion and aggregate expenditure = $4.6 trillion, we would expect
a. prices to fall until the additional $0.4 trillion of output was sold b. prices to rise c. output to rise because businesses anticipate that buyers will spend more in the future to compensate for weak spending in this period d. inventories to rise by $0.4 trillion e. inventories to shrink by $0.4 trillion
Refer to the figure below. The equilibrium price is ________, and the equilibrium quantity is ________. 
A. $4; 6 B. $8; 6 C. $6; 4 D. $2; 8
In product markets:
a. Businesses sell resources to households b. Businesses sell goods and services to households c. Households sell products to business firms d. Households sell resources to business firms