What could result in an increase of consumption demand and a decrease in labor supply?
A) a drop in current taxes
B) an increase in future taxes
C) a decrease in total factor productivity
D) an increase in government expenses
A
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Which of the following statements about natural monopoly is correct?
A) Governments regulate natural monopolies in order to ensure that costs of production are minimized. B) Governments regulate natural monopolies in order to ensure that the firm earns a normal profit. C) Governments regulate natural monopolies in order to prevent them from making profits. D) Governments regulate natural monopolies in order to keep their workers from earning wages that are too high.
For a monopoly, for all units greater than one, the marginal revenue curve:
A. lies above the demand curve. B. lies below the average revenue curve. C. cannot be negative. D. All of these statements are true.
You observed last week that the price of tomatillos was $4 per pound and that the total quantity of tomatillos consumed in Ames was 50 pounds. This week, you observe that the price of tomatillos increased to $6 per pound and the consumption decreased to 30 pounds. Based on your observations, calculate the elasticity of demand for tomatillos.
A. -2 B. -1.6 C. -0.8 D. -0.5
As the price level falls, the slope of the RGDP demanded curve ______.
a. increases
b. decreases
c. remains constant
d. switches to vertical