If the demand for a monopolist's product increases, its
A. marginal revenue decreases, making it more profitable to hire more workers.
B. marginal revenue increases, making it more profitable to hire more workers.
C. marginal revenue increases, making it more profitable to hire fewer workers.
D. marginal revenue decreases, making it more profitable to hire fewer workers.
Answer: B
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The principle that states that what matters to people is the real value or purchasing power of money is the
A) marginal principle. B) spillover principle. C) real-nominal principle. D) principle of diminishing returns.
Economists assume that business firms attempt to maximize their profits.
Answer the following statement true (T) or false (F)
In the Keynesian view of macroeconomic equilibrium during a depression, aggregate demand and aggregate supply intersect
A. in the horizontal segment of the aggregate supply curve. B. in the horizontal segment of the aggregate demand curve. C. in an upward-sloping segment of the aggregate supply curve. D. in the vertical segment of the aggregate supply curve.
The demand for dollars will increase in foreign-exchange markets if:
A. the U.S. is perceived to be a riskier place for investment relative to other nations. B. US consumers decide to buy more foreign goods than before. C. foreigners want to buy less U.S. goods. D. U.S. interest rates are high relative to those overseas.