Refer to Scenario 10.2. Suppose that a tax of $5 for each unit produced is imposed by state government. How much profit does the monopolist earn?
A) $4050
B) $4950
C) $450
D) $5
A
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Something becomes money only if
A) people use it as a general medium of exchange. B) it is backed by another commodity, typically gold or silver bullion. C) the central government says it's money. D) it promises to pay the bearer a fixed quantity of a scarce metallic good.
The present value of a stream of future revenues varies ________ with the future revenues and ________ with the interest rate
A) inversely; inversely B) directly; directly C) inversely; directly D) directly; inversely
Refer to Figure 7-1. The market equilibrium price is
A) $30. B) $25. C) $20. D) <$20.
A temporary supply shock that raises prices will cause the real interest rate to
A) rise in both the short and long runs. B) rise in the short run but not in the long run. C) fall in both the short and long runs. D) fall in the short run but not in the long run.