A profit-maximizing monopoly will NEVER produce along a range of output for which
A) the demand curve is elastic.
B) the demand curve is inelastic.
C) the price elasticity of demand is greater than 1.
D) the price elasticity of supply is greater than 1.
Answer: B
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Johnny has allocated $30 toward coffee and tea and feels that coffee and tea are perfect substitutes. Due to differences in caffeine levels, his MRS of tea for coffee equals two. If coffee and tea sell for the same price, Johnny will
A) spend all $30 on tea. B) spend all $30 on coffee. C) spend $20 on coffee and $10 on tea. D) be indifferent between any bundle of coffee and tea costing $30.
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.
Individuals in a market economy can be both buyers and sellers.
Answer the following statement true (T) or false (F)
Other things equal, the optimal quantity of immigrants will be greater, the:
A. higher the unemployment rate in the destination nation. B. greater the degree of substitutability between immigrant and domestic-born workers. C. greater the degree of complementarity between immigrant and domestic-born workers. D. lower the rate at which immigrants can be absorbed.