The marginal revenue of a monopolist
A. Is equal to price at all output levels.
B. Is positive up to the rate of output that maximizes total revenue.
C. Is negative up to the rate of output that maximizes total revenue.
D. Is above a downward-sloping demand curve.
Answer: B
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The institution that is responsible for maintaining international monetary stability is the:
A. International Monetary Fund. B. World Bank. C. United Nations. D. International Reserve Bank.
The opportunity cost of holding money balances increases when:
A. the inflation rate decreases. B. the interest rate increases. C. the interest rate decreases. D. GDP is far from full employment.
Suppose there are two firms on a river and the production processes of both require clean water. The upstream firm's process dirties the water, which it dumps back into the river
The downstream firm must clean the water before using it in its production process. If the two firms would merge A) the external costs of the merged firm would equal the external costs of the upstream firm, which would then be passed on to its customers. B) the total costs of production fall since the external costs disappear. C) the external costs of the upstream firm are private costs after the merger. D) the internal costs of the downstream firm become external costs of the merged firm.
The highest tariff rates of the twentieth century in the United States arose as a result of which law?
A) the Robinson-Patman Act B) the Tariff of Abominations Act C) the Wheeler-Lea Act D) the Smoot-Hawley Act