Which of the following statements is (are) true of a monopoly? (i) A monopoly has the ability to set the price of its product at whatever level it desires. (ii) A monopoly's total revenue will always increase when it increases the price of its product. (iii) The more a monopoly increases output, the higher the profits
a. (i) only
b. (ii) only
c. (i) and (ii) only
d. (ii) and (iii) only
a
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Barter works best when: a. there is an absence of a double coincidence of wants
b. many different products are available in the economy. c. money is readily available to establish relative prices. d. each trader has what the other wants and wants what the other has. e. highly developed economies achieve extensive specialization of labor.
The purchasing power parity method of comparing income levels across countries
a. calculates the cost of purchasing a common bundle of goods in each country and then uses this price index to convert each country's income to a common currency. b. uses the exchange rate to convert the income level of each country to a common currency. c. uses the prime interest rate in each country to convert the income level of each country to a common currency. d. calculates the ratio of imports relative to exports in each country and then uses this ratio to convert each country's income to a common currency.
Deflation:
a. under the current trends will cause consumers' purchasing power to shrink. b. has been persistent in the U.S. economy since the Great Depression. c. was prevalent during the oil shocks of the 1970s. d. none of these choices.
Because the monopsonist takes into account the effect that employment expansion has on wages paid to existing workers, it will
A. employ less and pay less than the corresponding values under competition. B. be exempt from minimum wage laws. C. pay union workers more than nonunion workers. D. employ more and pay more than the corresponding values under competition.