After September 11, 2001, a small group of economists argued that the economy's self-correcting mechanism would work to counteract the recessionary effects of the attack
a. True
b. False
Indicate whether the statement is true or false
True
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If a payout is certain to occur, then the variance of that payout equals
A) zero. B) one. C) the expected value. D) the expected value squared.
If Ben values good X more than good Y, and Catherine values good Y more than good X, a firm can increase its profits by
A) charging the same price for both goods. B) bundling the goods. C) selling the goods in a competitive market. D) charging one price per good.
In a market with a binding price control, a. there is an imbalance between the quantity supplied by sellers and the quantity demanded by buyers. b. the costs of production are fully reflected in the price paid
c. the price observe reflects the scarcity of the good. d. all of the above are true.
Use the following graph showing the demand and marginal revenue curves faced by a pure monopoly to answer the next question.
What price should the pure monopoly charge to maximize total revenue?
A. P1 B. P2 C. P3 D. P4