In the short run, if a monopoly is forced to charge a price equal to marginal cost:
A) output will fall.
B) the deadweight loss will decrease.
C) consumer surplus will decrease.
D) other firms will enter the industry.
Ans: B) the deadweight loss will decrease.
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The statement that ________ is a positive statement
A) more students should study economics B) the price of gasoline is too high C) too many people in the United States have no health care insurance D) the price of sugar in the United States is higher than the price in Australia
The investment component of GDP includes: a. funds in individual retirement accounts
b. construction of a new steel mill. c. the sale of shares of Coca-Cola stock. d. the purchase of a refrigerator by a household.
Macroeconomics first developed as a new subfield of economics:
A. in response to the severe economic hardships of the Great Depression. B. as a result of Adam Smith's publication of The Wealth of Nations in 1776. C. when Adolph Hitler ordered economists to learn more about national economies. D. following the oil price increases of the 1970s.
Two goods are complements if:
A. an increase in the price of one good leads to an increase in demand for the other. B. there are no substitutes for either of them. C. people tend to consume either one or the other. D. an increase in the price of one good leads to a decrease in demand for the other.