If fast food is an inferior good then:
A. the quantity of fast food demanded will rise as the price of fast food rises.
B. the demand for fast food will fall as income falls.
C. the demand for fast food will fall as income rises.
D. the demand for fast food will fall as the price of fast food rises.
Answer: C
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When a monopolist identifies its profit-maximizing quantity of output, how does it decide what price to charge?
A. It charges a price equal to the marginal cost at the profit-maximizing output level. B. It charges a price slightly greater than the marginal cost at the profit-maximizing output level. C. Cannot be determined from information given D. It charges a price less than the marginal cost at the profit-maximizing output level.
If firms have more capital, it is ________ for workers
A) harmful B) ineffective C) beneficial D) unimportant
A person removes the anti-pollution devices on his automobile. An external cost associated with this is
A) the feeling of guilt the person feels for violating the law. B) the ticket he gets when a highway patrol officer pulls him over. C) the man's neighbor washes his car more often because of increasing smog. D) the man buys less gasoline, reducing the income of local gas stations.
A spending shock typically involves a dramatic reduction in spending in virtually all sectors of the economy simultaneously
a. True b. False