One difference between a monopoly and a competitive firm is that
A) a monopoly is a price taker.
B) a monopoly maximizes profit by setting marginal revenue equal to marginal cost.
C) a monopoly faces a downward sloping demand curve.
D) None of the above.
C
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The law of demand refers to how
A) demand changes when people's incomes change. B) demand changes when the prices of substitutes and complements change. C) the quantity demanded changes when the price of the good changes. D) the price of the good changes when people's demand for the good changes. E) the quantity demanded changes when the demand for the good changes.
If actual inflation is lower than expected inflation,
A) there is a redistribution of wealth from borrowers to lenders. B) there is a redistribution of wealth from lenders to borrowers. C) there is no redistribution of wealth, but the total wealth in the economy increases. D) there is no redistribution of wealth, but the total wealth in the economy decreases.
Which of the following about potential GDP is true?
a. During a recession, actual GDP will exceed potential GDP. b. Actual GDP cannot exceed potential GDP, even for short periods. c. Actual output may be either above or below potential output depending on how fully resources are utilized. d. The economy's potential output is the maximum output that could be achieved temporarily during a time of economic boom.
The residents of Ireland earn $200 million of income from abroad. Residents of other countries earn $300 million in Ireland. Therefore, Ireland's
a. net factor payments from abroad are positive, and its GDP is larger than its GNP. b. net factor payments from abroad are positive, and its GNP is larger than its GDP. c. net factor payments from abroad are negative, and its GDP is larger than its GNP. d. net factor payments from abroad are negative, and its GNP is larger than its GDP.