Monopolies are inefficient because
A. they charge a price above marginal cost.
B. they price discriminate.
C. they maximize profits.
D. they always make above-normal profits.
Answer: A
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Refer to Table 8-14. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 2016 equals
A) 92.2. B) 102.6. C) 108.5. D) 109.1.
A constant-cost industry is one that can expand and contract without effecting per unit production costs
a. True b. False
All of the following might be considered rent-seeking behavior by firms, except one. Which is the exception?
a. bribes to government officials b. money spent on lobbying government officials c. advertisements describing the firm's position on an issue under legislative review d. money spent on advertising for new products e. time spent testifying before state and federal committees
Inflation-targeting means that the central bank is legally required to focus only on keeping inflation high
a. True b. False Indicate whether the statement is true or false