For a monopoly, a negative marginal revenue implies:
A. the price effect is larger than the quantity effect.
B. total revenues are increasing.
C. that the demand is price elastic.
D. the quantity effect is larger than the price effect.
A. the price effect is larger than the quantity effect.
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What does the demand for labor depend on, directly or indirectly?
(a) The wage rate (b) Productivity of labor (c) Demand for the goods and services produced by the labor (d) All of the above
If the government requires a natural monopoly to price at marginal cost:
a. monopoly firms will earn zero economic profits because the price of the good equals the cost of producing that good. b. monopoly firms will operate at a loss because P < AC. c. more firms will be able to enter the market. d. producer surplus will increase because quantity supplied is greater.
John Maynard Keynes, author of The General Theory of Employment, Interest, and Money, argued that
a. classical economic theory was correct b. the government should follow a policy of laissez faire c. the critiques of classical economics were flawed d. the economy does not always perform well in the absence of government guidance e. instead of focusing on money, the government should control interest rates
Which of the following is correct?
a. Over the last 100 years Japan had a higher average growth rate than the United States. It follows that, today, the standard of living in Japan is higher than in the United States. b. The typical person in Bangladesh today has about twice the real income of a typical American 100 years ago. c. The typical citizen of China today has about one-half as much real income as the typical citizen of America today. d. None of the above is correct.