Exhibit 3 Demand and cost curves for GeneTech, a monopolist with a patented vaccine
In Exhibit 9-3, how much vaccine should GeneTech produce to maximize its profit?
A. 300 doses per hour.
B. 400 doses per hour.
C. Between 400 and 500 doses per hour.
D. 500 doses per hour.
Answer: A
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An economic ________ refers to either an upturn or a downturn in the economy
A) fluctuation B) stagnation C) model D) chain index
An increase in the growth rate of population in a steady-state economy would cause
A) a parallel shift upward in the investment line. B) a pivot up and to the left in the investment line. C) a pivot down and to the right in the investment line. D) a parallel shift downward in the investment line.
Briefly explain why changes in government spending or taxes do not have independent effects on aggregate demand. What does shift the aggregate demand curve in the classical model?
What will be an ideal response?
If the marginal propensity to consume (MPC) decreases, then
A) the marginal propensity to save (MPS) decreases. B) the multiplier decreases. C) the multiplier increases. D) MPC + MPS is less than 1.