A price floor that sets the price of a good above market equilibrium will cause:
a. a decrease in quantity demanded of the good.
b. an increase in quantity supplied of the good.
c. a surplus of the good.
d. all of these.
d
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If a monopolist's marginal revenue is $25 and its marginal cost is $19, then the monopolist should:
A. raise its price. B. increase its output. C. decrease its output. D. leave its output and price unchanged.
We don't need to draw separate curves for demand, average revenue, and marginal revenue curves for a perfectly competitive firm. Why?
Wheat used for producing bread is
A. a durable good. B. not going to generate any employment. C. an intermediate good. D. a final good.
The Lucas supply model, in combination with the assumption that expectations are rational, leads to the conclusion that
A. only unanticipated policy changes can have an impact on output. B. contractionary policies, but not expansionary policies, can have an impact on real output. C. expansionary policies, but not contractionary policies, can have an impact on real output. D. neither anticipated nor unanticipated policy changes can have an impact on output.