Price will always exceed marginal cost for the profit-maximizing monopolist, or any price-setter firm for that matter
Indicate whether the statement is true or false
TRUE
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Economists might be willing to accept a policy that adversely affected distribution of income if it
a. lessened income disparities. b. diminished labor productivity by a large amount. c. increased productivity by a large amount. d. were favorable to the rich.
Which of the following central bank policies will raise the money supply?
a. Buying government securities. b. Selling foreign currency in the foreign exchange market. c. Raising the discount rate. d. All of the above. e. None of the above.
If the price of inputs rises and personal income taxes rise:
a. Price index rises, and the change in real GDP is uncertain. b. Price index falls, and real GDP rises. c. Price index falls, and real GDP falls. d. Price index falls, and the change in real GDP is uncertain. e. The change in price index is uncertain, and real GDP falls.
Firms are prohibited from entering into contracts, combinations, and conspiracies that restrain trade by:
A. Section 8 of the Clayton Act. B. the Wheeler-Lea Act. C. Section 2 of the Sherman Act. D. Section 1 of the Sherman Act.