Classical economists believed that production could be stuck below its full employment level for a long period of time
a. True
b. False
B
You might also like to view...
How is it logically possible for a monopolist to get different consumers to purchase different bundles on a menu (such as different sizes of coffee cups), and thereby achieve a form of price discrimination, even if the firm cannot observe the consumers' valuations directly? a. Different types of consumers have different tradeoffs between money and amounts of the good. b. The monopolist can use
a market-separation strategy. c. Social norms are powerful deterrents to lying about one's type. d. This is impossible: if one bundle is preferred by one type, logically it will be preferred by all.
In a two-person, two-good economy, the gains to specialization will be larger when:
A. one person has an absolute advantage in both goods. B. there are large differences between the individuals in their opportunity costs of producing the two goods. C. there are small differences between the individuals in their opportunity costs of producing the two goods. D. neither person has an absolute advantage.
Refer to Table 10-7. Suppose Antonio has $10 to spend and the price of beer = $2 per glass and the price of pizza = $2 per slice. How many of each good will he consume when he maximizes his utility?
A) 2 glasses of beer, 3 slices of pizza B) 3 glasses of beer, 2 slices of pizza C) 4 glasses of beer, 5 slices of pizza D) 2 glasses of beer, 1 slice of pizza
If a monopolist is producing at a point at which marginal revenue is greater than marginal cost, it should decrease the level of production
a. True b. False Indicate whether the statement is true or false