If a monopolist sells 100 units at $8 per unit and realizes an average total cost of $6 per unit, what is the monopolist's profit?
a. $200
b. $400
c. $600
d. $800
a
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Which of the following statements is true of fiat money? a. Fiat money has to be backed by gold assets
b. Fiat money is not backed by any valuable asset. c. The intrinsic value of fiat money should always exceed its extrinsic value. d. The intrinsic value of fiat money should always be equal to its extrinsic value.
An increase in the price of a key input in production, like oil, increases aggregate supply.
Answer the following statement true (T) or false (F)
Suppose the government of a country wants to increase the aggregate demand of its economy by $10 billion at all price levels. However, it currently has a balanced budget with no surplus and is unwilling to borrow money to finance fiscal policy. The government could still accomplish its goal by increasing government purchases by ________ and increasing taxes by $10 billion.
A. $20 billion. B. $10 billion C. $15 billion. D. $5 billion
Why is there NO persistent unemployment in the classical model?
A) Unionization creates job security for workers. B) The wage level adjusts to eliminate unemployment. C) The interest rate adjusts to eliminate unemployment. D) The rate of economic growth is always high enough to allow those who want to work at current wages to find jobs.