The price charged by a monopolist is the point on the demand curve that corresponds to the output where marginal revenue equals marginal cost
a. True
b. False
Indicate whether the statement is true or false
True
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In the circular flow model, there are two types of markets: the ________ market and the ________ market
A) goods; factor B) supply; demand C) households; firms D) producers; consumers E) service; goods
The ultimate source of liquidity in a modern industrial economy is the
A) government Treasury. B) central bank. C) capital market. D) liquidity market.
The classicals believed that when savings exceeds investment.
A. demand is reduced and the economy will go into a recession. B. the interest rate will decline and equate savings and investment. C. an increase in supply will encourage higher investment spending. D. if savings is greater than investment unemployment would reduce savings.
In contrast to the functional finance view, Classical sound finance macroeconomics assumes that individuals:
A. do not adjust their spending to account for future tax payments. B. adjust their spending to account for future incomes. C. do not adjust their spending to account for future incomes. D. adjust their spending to account for future tax payments.