In 2007 a company sold 35,000 drones at $150 each. In 2008 the same company sold 40,000 drones at $170 each. This information suggests that
A. The price of drones increased because the costs of production increased from 2007 to 2008.
B. From 2007 to 2008, the demand curve for drones was upward-sloping because of improved technology.
C. The supply of drones increased from 2007 to 2008.
D. The demand for drones increased from 2007 to 2008.
Answer: D
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Which of the following statements is true about advertising by a monopolistically competitive firm?
A) Since the monopolistic competitor, like the perfect competitor, makes zero profit in the long run, it is a waste of resources to advertise its products. B) Advertising could make the monopolistic competitor's demand more inelastic, but advertising has no effect on a perfect competitor's demand. C) Monopolistically competitive firms tend to shun advertising because advertising draws attention to the variety of differentiated products available in the industry. D) Advertising will be more beneficial if a monopolistic competitor colludes with other firms to advertise the products of the industry as a whole rather than an individual firm's product.
In the long run, the price level in an economy is determined solely by: a. the long-run aggregate supply curve
b. the aggregate demand curve. c. the amount of cyclical unemployment in the economy. d. the short-run aggregate supply curve. e. the potential output level.
Price-fixing is illegal under Section 1 of the Sherman Act.
Answer the following statement true (T) or false (F)
In his book Progress and Poverty, Henry George argued that:
poverty is associated with the personal characteristics of individuals and therefore cannot be remedied by government antipoverty programs. B. economic rent could be heavily taxed without impairing the supply of land or therefore the productive capacity of the economy. C. rents should not be taxed because rental income is the basic source of saving, which ultimately permits a high level of investment and economic growth. D. taxes on rents are undesirable because they have a severe disincentive effect on landlords.