A pure monopolist is selling 7 units at a price of $12. If the marginal revenue of the 8th unit is $4, then the price of the 8th unit is
A) $10.
B) $11.
C) greater than $12.
D) $4.
B
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A large open economy increases its desired saving. This causes the world real interest rate to ________ and the country's current account balance to ________
A) fall; fall B) remain unchanged; rise C) fall; rise D) remain unchanged; fall
Sales and excise taxes are:
a. progressive. b. proportional. c. regressive. d. fixed-revenue.
Import quotas are
a. methods for reducing imports by limiting the quantity of goods that can enter the country each year. b. voluntary agreements by exporting countries to limit sales in a foreign country. c. subsidies to foreign producers to encourage them to trade. d. None of these.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.