Since a monopoly faces no competitors, it need not advertise
Indicate whether the statement is true or false
False. The monopoly benefits from advertising because advertising can shift the demand for its product rightward.
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Which of the following interest rates is usually below other money market rates?
A) Discount rate B) Prime rate C) Federal funds rate D) Treasury note rate
Demand-pull inflation is typically caused by rapidly rising costs of production
a. True b. False Indicate whether the statement is true or false
If the demand for donuts is elastic, then a decrease in the price of donuts will
a. increase total revenue of donut sellers. b. decrease total revenue of donut sellers. c. not change total revenue of donut sellers. d. There is not enough information to answer this question.
If real income rises from $5 trillion to $5.3 trillion while the price level increases by 10 percent, it follows that nominal income:
A. rises by 6 percent. B. rises by 16 percent. C. rises by 10 percent. D. doesn't change.