In contrast with perfect competition, a monopolist:
a. may have economic profits in the long run.
b. earns zero economic profits in the long run.
c. produces where MR > MC, and a perfectly competitively firm produces where P = MC.
d. produces more at a lower price.
a. may have economic profits in the long run.
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Voluntary export restraints are illegal under international trading rules
Indicate whether the statement is true or false
Colonialists tried to attract precious metals and coins by raising or attempting to raise the colonial price of the foreign money. This is called devaluation
Indicate whether the statement is true or false
According to the substitution effect, an increase in the price of oranges will: a. cause consumers to consume fewer apples because more money is spent on oranges
b. cause consumers to spend more on oranges because a higher price signals that oranges are better than apples. c. cause consumers to replace some oranges with other fruit that is now relatively cheaper than oranges. d. leave consumers with less money to spend on all goods.
The deposit creation formula can be defined as
a. one minus the required reserve ratio. b. the same as the GDP income multiplier. c. the reciprocal of the required reserve ratio. d. one plus the required reserve ratio.