In an oligopoly, the price effect is:
A. the increase in price from lowering the quantity sold.
B. the decrease in total revenue that occurs because the increase in quantity will push the market price down.
C. the increase in total revenue due to the money brought in by the sale of additional units.
D. the increase in output that comes from raising the price.
B. the decrease in total revenue that occurs because the increase in quantity will push the market price down.
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A decrease in the real interest rate leads to
A) an increase in investment demand so that the demand for loanable funds curve shifts rightward. B) a fall in the capital stock. C) an increase in the expected profit. D) a movement downward along the demand for loanable funds curve.
If all land had equal productivity, then
a. land rent would increase b. differential land rents would not exist c. location rent would not exist d. locations rent would be everywhere the same e. differential rent would increase
Monetarists believe that velocity
A) is constant. B) changes erratically. C) and the money supply always have an inverse relationship. D) changes in a way that can be understood and predicted.
Microeconomics
A. is generally too complex and abstract to be of much use in making real-world business decisions. B. studies the behavior of individual economic units or segments of the economy. C. contributes to the understanding of ordinary business practices or tactics. D. all of the above. E. both b and c.