The table above gives the demand for a monopolist's output. What is the marginal revenue when output is increased from 2 to 3 units?
A) $18
B) $4
C) $7
D) $6
B
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What is the difference between the Keynesian and rational expectations theories concerning the success of stabilization policy?
Automatic stabilizers are government programs that:
A. exaggerate the ups and downs in aggregate demand without legislative action. B. bring expenditures and revenues automatically into balance without legislative action. C. shift the budget toward a deficit when the economy slows but shift it toward a surplus during an expansion. D. increase tax collections automatically during a recession.
National health care programs are not as effective as they could be because:
A. public health care clinics often run out of important drugs. B. health care providers tend to have a low absentee rate. C. many doctors in clinics do not have sufficient knowledge to properly diagnose patients. D. doctors rarely diagnose below their knowledge frontier.
The current price floor in the agricultural lettuce market makes it such that price of lettuce is 25% higher than equilibrium price and 100 heads of lettuce are demanded. Assuming that the elasticity of demand for lettuce is -0.50, what would be the equilibrium quantity of lettuce if the government removed the current price floor?
A) Quantity = 125 B) Quantity = 121.5 C) Quantity = 112.5 D) Quantity = 75