Which of the following is characteristic of a pure monopolist's demand curve?
A. Average revenue is less than price.
B. Its elasticity coefficient is 1 at all levels of output.
C. Price and marginal revenue are equal at all levels of output.
D. It is the same as the market demand curve.
Answer: D
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In long-run equilibrium after a permanent money-supply increase there follows:
A) an increase in exchange rate, E. B) a decrease in exchange rate, E. C) an increase in output, Y. D) a decrease in output, Y. E) an unchanged exchange rate, E.
The ________ phase of the business cycle follows a recession
a. recession b. peak c. expansion d. trough
Which of the following statement is normative?
A. Higher taxes are needed to support education. B. A large budget surplus is likely to lower interest rates. C. Trade deficits frequently occur in conjunction with budget deficits. D. The interest rate increases are the result of Federal Reserve actions to decrease the money supply.
Suppose that the extra cost to Tim of a third glass of soda is zero because he's at a restaurant that gives free refills. According to the Cost-Benefit Principle Tim should:
A. drink a third glass of soda if the extra benefit of doing so is positive. B. not drink a third glass of soda. C. drink a third glass of soda. D. drink a third glass of soda if his total benefit from drinking soda is positive.