Refer to the graph shown. Suppose the industry is currently perfectly competitive but then is taken over by a monopolist. Assuming that the monopolist maximizes profit:
A. the price of computers will decrease from $600 to $400 and the quantity demanded will rise from 200 to 400.
B. the price of computers will increase from $400 to $600 and the quantity demanded will fall from 400 to 200.
C. the price of computers will increase from $400 to $600 but there will be no change in quantity demanded.
D. there will be no effect on the price of computers.
Answer: B
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If the required reserve ratio is .10, the demand deposit expansion multiplier is
A) .1. B) 4. C) 5. D) 10.
Politicians and citizens may often choose policies that reduce economic efficiency because they are perceived as “fairer.”
Answer the following statement true (T) or false (F)
According to the HeckscherOhlin model, international trade for a nation with a relative abundance of skilled labor and a relative scarcity of unskilled labor will tend to
a. widen or aggravate the income disparity between skilled and unskilled workers. b. reduce the income disparity between skilled and unskilled workers. c. lower the wages of both groups of workers. d. raise the wages of both groups of workers.
Which form of business organization accounts for the largest proportion of sales in the United States?
A. the subchapter S partner-based proprietorship. B. the proprietorship C. the partnership D. the corporation