Refer to the information provided in Figure 14.1 below to answer the question(s) that follow.
Figure 14.1Refer to Figure 14.1. Four firms that produce chewing gum form a cartel. The cartel faces the market demand curve given by D. At the profit-maximizing output, the profit on each pack of gum is
A. $0.04.
B. $0.09.
C. $0.15.
D. $0.25.
Answer: B
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a. a good with elastic demand b. a good with inelastic demand c. income d. wealth
Which of the following refers to human capital?
a. Money spent by business to acquire labor b. The acquired skill and productivity of workers c. The plant and equipment used with labor d. Money spent on purchasing the latest machinery e. Money that workers save
Which monetary policy tool is considered an expansionary tool?
(A) Decreasing the discount rate. (B) Cutting taxes. (C) Increasing the reserve requirements. (D) Increasing government spending.
COLA provisions automatically increase wages or benefits to match
A. inflation. B. the cost of living. C. deflation. D. disinflation.