Under monopoly
a. too small a share of society's resources is used to produce the monopolized commodity.
b. Adam Smith's invisible hand assures efficient resource allocation.
c. too large a share of society's resources is being used to produce the monopolized commodity.
d. MC > MU.
a
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If money demand is extremely sensitive to changes in the interest rate, the money demand curve becomes almost horizontal. If the Fed expands the money supply under these circumstances, then the interest rate will
A) change very little and investment and consumer spending will change very little. B) rise substantially and investment and consumer spending will rise substantially. C) fall substantially and investment and consumer spending will fall substantially. D) fall substantially and investment and consumer spending will change very little.
Negative marginal utility means that
a. total utility is also negative b. marginal utility increases as additional units are consumed c. the price of the product increases as additional units are consumed d. the total revenue spent on the product decreases as more of the product is purchased e. total utility decreases as additional units are consumed
When Fidel Castro came to power in Cuba in 1959, Cuba's exports were predominantly sugar and tobacco and these exports made up a relatively large part of its economy. To counter this dependence on two goods, Castro's economic advisers used which of the following arguments to persuade him to impose trade restrictions?
a. comparative advantage argument b. infant industries argument c. national security argument d. antidumping argument e. diversity of industry argument
Answer the question based on the following list of items that are related to aggregate demand and/or aggregate supply.
Refer to the list above. Changes in which of the above two factors would most likely cause a change in aggregate demand?
. 1 and 5
B. 3 and 10
C. 5 and 7
D. 8 and 9