Which of the following is true for a pure monopolist?
a. The firm has a perfectly elastic demand curve.
b. The firm will always earn an economic profit.
c. The demand curve is above the marginal revenue curve.
d. None of these is true.
c
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Scarcity applies to decision makers in macroeconomics but not in microeconomics
a. True b. False Indicate whether the statement is true or false
Which statement best describes economic fluctuations?
a. Expansions and contractions typically have about the same lengths. b. Expansions typically last 7 years, while recessions typically last 3 years. c. Expansions tend to be shorter than contractions. d. The percent change in output is larger during recessions than during expansions. e. Expansions and contractions vary in duration and magnitude, with expansions tending to last longer than contractions.
Which of the following is a basic point that Keynes made about consumption?
A) Consumption and disposal income are inversely related. B) When disposable income changes, consumption changes by a greater amount. C) Consumption is dependent upon disposable income. D) b and c E) all of the above
Which of the following examples shows a shortage?
a. At $50 per watch, a company produces 10,000 watches and sells the same amount. b. At $50 per watch, a company produces 10,000 watches and has a demand for 100 more. c. At $50 per watch, a company produces 5,000 watches and sells 4,998. d. At $50 per watch, a company produces 5,000 watches and sells 1,000.