Refer to the diagram for a pure monopolist. If the monopolist is unregulated, it will maximize profits by charging:
A. a price above P 3 and selling a quantity less than Q 3 .
B. price P 3 and producing output Q 3 .
C. price P 2 and producing output Q 2 .
D. price P 1 and producing output Q 1 .
B. price P 3 and producing output Q 3 .
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Refer to Table 1-3. What is Santiago's marginal cost if he decides to stay open for an extra two hours instead of one hour?
A) $18 B) $36 C) $38 D) $102
Historically, consumption spending in the United States has _____
Fill in the blank(s) with the appropriate word(s).
In the Keynesian consumption function
a. consumption is a constant fraction of income. b. the marginal propensity to consume is constant. c. disposable income determines consumption. d. All of the above e. None of the above
The policy response to the recession of 2008-2009 provided an experiment on the potency of Keynesian fiscal policy. In what respect was this true?
a. The money supply increased rapidly and the short-term interest rates were pushed to near zero just as the Keynesian model of fiscal policy recommends. b. Government spending increased sharply and the budget deficits were large just as the Keynesian model of fiscal policy recommends. c. The money supply increased rapidly and the budget was shifted toward a surplus just as the Keynesian model recommends. d. The federal budget was balanced just as the Keynesian model indicates would be prudent policy during a recession.