In the short run equilibrium, a monopolist's profits:
A. May be positive, negative, or zero
B. Are positive because of the monopolist's market power
C. Are positive if the product's elasticity of demand is less than 1
D. Are positive if the product's elasticity of demand is greater than 1
A. May be positive, negative, or zero
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Rent control is an example of a price ceiling. Which of the following problems must be addressed under a rent control program?
a. what to do with the surplus of rental units b. how to subsidize renters so that they can afford to pay the higher rents c. how to decrease the quantity of rental units to the equilibrium level d. whether the opportunity cost of rental units equals the competitive market price e. how to allocate scarce rental units
The Fed decreases reserves if it conducts open market
a. purchases or auctions term credit. b. purchases but not if it auctions term credit c. sales or auctions term credit d. sales but not if it auctions term credit
An increase in a country's capital stock relative to its work force is known as:
A. capital deepening. B. capital growth. C. capital improvement. D. capital augmentation.
The freedom of individuals to start and operate private business in search of profits is known as
A. laissez-faire. B. centralized decision making. C. consumer sovereignty. D. free enterprise.