A profit-maximizing monopolist
A. is just as socially efficient as a perfectly competitive firm in allocating resources to production since he or she, too, seeks the largest return on his or her investment.
B. produces an output level at which marginal utility exceeds marginal cost.
C. produces more output than a perfectly competitive industry.
D. always produces in the inelastic region of his or her demand curve.
Answer: B
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The international agreement on intellectual property administered by the WTO is known as __________.
A. GATT B. NAFTA C. TRIPS D. WTOP
Social Security benefits have played an important role in the improved economic status of the elderly over time.
A. True B. False C. Uncertain
An inflationary gap occurs when
A. short-run aggregate supply falls, but other things remain constant. B. the short-run equilibrium level of real GDP is greater than long-run aggregate supply. C. the short-run equilibrium level of real GDP is less than long-run aggregate supply. D. aggregate demand falls, but other things remain constant.
The price elasticity of supply is
A. positive. B. negative. C. zero. D. unknown, depending on other factors.