Because monopolists charge a price in excess of marginal cost, it must be the case that monopolists:
A. produce more than the socially optimal level of output.
B. earn a positive economic profit.
C. produce less than the socially optimal level of output.
D. earn a negative economic profit.
Answer: C
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An income tax cut ________ aggregate demand and ________ aggregate supply
A) increases; decreases B) increases; increases C) decreases; decreases D) decreases; increases E) does not change; increases
Economists expect the relationship between consumption and disposable income to be
a. unpredictable. b. transitory. c. fixed. d. inverse e. stable.
The English economist, Thomas Malthus, believed that sustained growth of income per person would be impossible because of
a. rapid growth of capital formation if population increased above the subsistence level. b. rapid growth of population if income increased above the subsistence level. c. rapid growth of government if income increased above the subsistence level. d. political democracy if income increased above the subsistence level.
Real income and money income are the same concept
Indicate whether the statement is true or false