Figure 11-3
In Figure 11-3, one can tell from the graph that the monopolist will earn a positive profit only if
a.
the price exceeds $3.
b.
the price exceeds $2.
c.
output is less than 60 units.
d.
One cannot tell from the information given.
d
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With an increase in the budget deficit, the open-economy outcome compared to the closed-economy outcome features a ___________ in Real GDP
A) larger increase B) smaller increase C) larger decrease D) smaller decrease
Developing countries do:
A. compete with one another for foreign investment, and this competition reduces the benefits from foreign investment. B. not compete with one another for foreign investment, because they have sufficient domestic saving to finance their investment needs. C. not compete with one another for foreign investment, because they lack the infrastructure to attract it in the first place. D. compete with one another for foreign investment, but this competition is beneficial to developing countries because it insures a more efficient allocation of resources.
Which of the following statements is TRUE?
A. APC + MPS = MPC + APS B. MPC + APS < 1 C. APC + MPS = 1 D. APC + APS = 1
A positive cross price elasticity of demand between two goods suggests that the goods are
A. not related. B. substitutes. C. complements. D. both of unitary elasticity.