Figure 11.2Figure 11.2 shows demand and costs for a monopolistically competitive firm. At the profit maximizing output level, the firm's profit is:
A. $1,200.
B. $1,050.
C. $750.
D. $375.
Answer: B
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Refer to Figure 27-7. Given that the economy has moved from A to B in the graph above, which of the following would be the appropriate fiscal policy to achieve potential GDP?
A) increase government spending B) contractionary fiscal policy C) increase taxes D) decrease interest rates
You have a bond that will pay you one hundred dollars one year from today. If the prevailing interest rate is r, the bond is currently worth
a. 100/r b. 100r c. 100/(1 + r) d. 100
Game theory, which is used in studying oligopoly behavior, originated from the study of games such as the following, except:
A. Poker B. Solitaire C. Chess D. Bridge
Use the following data to answer the next question. The disposable income (DI) and consumption (C) schedules are for a private, closed economy (an economy with no government and no international trade). All figures are in billions of dollars.Disposable IncomeConsumption$0$88080160152240224320296400368The marginal propensity to save in this economy is
A. 0.9. B. 0.1. C. 0.8. D. 0.72.