A common misconception about supply is that
A. supply depends on many other variables
B. price is a major determinant of quantity.
C. it is a fixed amount.
D. quantity cannot be determined in advance.
E. All of these responses are correct.
Answer: C
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Which of the following would show the LEAST amount of inequality?
A) Measured annual income. B) Measured annual wealth. C) Lifetime income. D) Measured annual income and annual wealth are equally distributed and are more equally distributed than lifetime wealth.
What is the average cost pricing rule? Why is it not an efficient way of regulating monopoly?
What will be an ideal response?
Politicians have suggested that the budget deficit could be reduced by
A) increasing taxes and reducing expenditures. B) lowering the interest rates. C) imposing higher tariffs on imported goods. D) forbidding interest payments on government bonds outsourcing.
To induce an increase in the quantity demanded of its product, a monopolist must reduce the
A) quality of its product and thereby generate a downward shift its ATC curve. B) price of its product and thereby generate a rightward shift in its demand curve. C) price of its product and thereby generate a rightward movement along its demand curve. D) quality of its product and thereby generate a downward movement along its ATC curve.