A monopoly maximizes profit by finding the output level where the difference between marginal revenue and marginal costs is as large as possible.
a. true
b. false
Answer: b. false
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A rate of inflation that exceeds the growth rate of money for a country could be explained by:
A. a decreasing velocity of money. B. a growing real economy. C. a constant velocity of money. D. an increasing velocity of money.
Which of the following statements concerning the supply of labor is true?
A. The wage rate has no effect on the quantity of labor supplied. B. The labor supply curve is downward sloping. C. The supply of labor is determined by the prevailing wage rate. D. The typical labor supply curve is upward sloping.
Investment as defined by economists differs from investment as defined by the general public in that
What will be an ideal response?
If disposable income = $200 billion and the APC = 0.8, then saving
A. is $280 billion. B. is $160 billion. C. is $40 billion. D. cannot be determined.