Suppose that a monopoly is currently producing the quantity at which marginal revenue is less than marginal cost. The monopoly can increase its profit by
A) shutting down.
B) lowering its price and increasing its output.
C) raising its price and decreasing its output.
D) lowering its price and decreasing its output.
E) not changing its price and increasing its output.
C
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If the government increases unemployment benefits, then the equilibrium amount of employment ________ and potential GDP ________
A) increases; increases B) does not change; does not change C) increases; decreases D) decreases; decreases E) decreases; increases
The Earned Income Tax Credit was created in _____
a. 1970 b. 1975 c. 1982 d. 1991
The Federal Open Market Committee was established to give the Fed the power to change reserve requirements
a. True b. False Indicate whether the statement is true or false
The level of money income below which a family is considered poor is called the
a. bottom 20 percent of the income distribution. b. poverty threshold income level. c. guaranteed income level. d. subsistence income level.