At any point where a monopolist's marginal revenue is positive, the downward-sloping straight-line demand curve is:
A. perfectly elastic, as is the perfectly competitive firm's.
B. elastic but not perfectly elastic, and a perfectly competitive firm's demand curve is perfectly elastic.
C. elastic but not perfectly elastic, as is the perfectly competitive firm's.
D. inelastic, while a perfectly competitive firm's demand curve is perfectly elastic.
Answer: B
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Suppose the market-clearing price of milk is $3.00 per gallon, but the diary industry persuades the government to establish a legally-mandated price support at $4.00 per gallon. The newly legislated price tends to
A) reduce the demand for milk. B) increase the production of milk. C) create a shortage of milk. D) decrease the price of milk products.
Which of the following are included in interest income? i. payments made for the use of land ii. income paid to households for loans they make iii. payments made by households for their borrowing
A) i, ii and iii B) ii and iii only C) i and ii only D) ii only E) iii only
The smaller the marginal propensity to save, other things constant, _____
a. the smaller the marginal propensity to consume b. the larger the multiplier c. the smaller the multiplier d. the flatter the consumption function e. the steeper the saving function
Estimates of U.S. job gains and losses due to free trade agreements
A) show no change in jobs. B) show clear gains in the number of jobs. C) show clear losses in the number of jobs. D) show mixed results, leading to no clear conclusion.