A monopolist finds the output (Q*) rate that maximizes profit. It finds the price by
A) taking the height of the marginal revenue curve at output rate Q.
B) taking the height of the marginal cost curve at output rate Q.
C) taking the height of the demand curve at output rate Q.
D) setting price equal to marginal cost.
Answer: C
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Because of the slope of the aggregate demand curve, we can say that
A) a decrease in the price level leads to a lower level of real GDP demanded. B) an increase in the price level leads to a higher level of real GDP demanded. C) a decrease in the price level leads to a higher level of real GDP demanded. D) an increase in the price level leads to no change in the level of real GDP demanded.
Some people attribute the rapid growth of the East Asian economies in the 1980s and 1990s to the:
A. success of their "industrial policies." B. governments picking industries to support with investments and favorable tax and trade policies. C. governments planning for growth by investing in certain industries. D. All of these are true.
Productivity efficiency in saving lives
a. is not possible to today's economy b. is guaranteed in today's economy c. occurs when the economy is saving the maximum possible number of lives d. requires producing on the economy's production possibilities frontier e. occurs where the production possibilities frontier intersects the "lives saved" axis
Ben quit his job as an economics professor to become a golf professional. He gave up his salary ($40,000 . and invested his retirement fund of $50,000 (which was earning 10 percent interest) in this venture. After all expenses, his net winnings (profit) were $45,000 . Ben's economic profits were
a. $45,000. b. $5,000. c. $2,000. d. zero.