Negative supply shocks can have a tendency to ________ costs of production and ________ the inflation rate
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
A
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Suppose a monopolist has TC = 100 + 10Q + 2Q2, and the demand curve it faces is p = 90 - 2Q. What will be the price, quantity, and profit for this firm?
What will be an ideal response?
Decisions to cut taxes are made by ________ and are an example of ________ policy.
A. Congress; fiscal B. the President; monetary C. the Federal Reserve; fiscal D. Congress; monetary
Which of the following statements about private and social costs is TRUE?
A) Social costs include externalities. B) Private cost do not include externalities. C) Social costs are never smaller than private costs. D) All of the above.
How does innovation differ from invention? Why is innovation required for economic growth?
What will be an ideal response?