Which of the following statements about monopoly is most accurate?
a. The monopolist has no incentive to produce efficiently.
b. Regardless of what is produced, the monopolist will use too many resources.
c. A monopolist has no incentive to keep costs down.
d. The monopolist "understocks" the market and charges too high a price.
D
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Consumers seek to
A) maximize profits. B) maximize expected consumer surplus. C) maximize expenditures. D) maximize choice.
For which of the following would the income effect of a price change be greatest?
a. ballpoint pens b. air travel to Australia c. chewing gum d. haircuts e. college textbooks
Which of the following is most likely to reduce the nominal market wage in a job category?
a. The job requires employees to work the night shift from 11 p.m. to 7 a.m. b. The job is prestigious, and the work is quite interesting. c. The job is widely viewed as dangerous. d. The job requires employees to move from city to city quite often.
Which of the following is an equilibrium condition for the goods market in the short-run? # randomize
A. measured savings equal measured investment B. Desired savings equal desired investment C. Money demand equals money supply D. Consumption equals savings