A monopolist faces an average total cost of $10 when it produces 400 units of its product. If it sells the 400 units at $6 per unit, ________
A) the monopolist makes a profit of $600
B) the monopolist makes a loss of $600
C) the monopolist makes a profit of $1,600
D) the monopolist makes a loss of $1,600
D
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U.S. real GDP
A) measures the change in the price level over time. B) precisely measures the improving standard of living in the United States. C) excludes the value of underground production and leisure time. D) includes the value of underground production but excludes the value of leisure time. E) is not as accurate as nominal GDP when measuring standard of living changes over time.
When income is $15,000, the amount of income taxes owed is $2,000; when income increases to $20,000, the amount owed increases to $3,000. The average income tax rate when a person earns $15,000 is
A) 75 percent. B) 15 percent. C) 13.3 percent. D) 20 percent.
Which of the following was a reason that the Federal Reserve took on additional risks associated with unconventional policy during the recession of 2007-2009?
a. The inflated price of Treasury bills made them too expensive to purchase in open market operations. b. The large budget deficit constrained conventional monetary policy. c. The U.S. Treasury was unable to sell Treasury bills in the primary market. d. The Fed was able to act more quickly than Congress.
Tax increases on business income decrease aggregate demand by decreasing
A) business investment spending. B) consumption spending. C) government spending. D) wage rates.