Suppose that a non-discriminating monopolist lowers its price from $75 to $70 in order to sell more output. Marginal revenue will
a. equal $75
b. equal $70
c. be between $75 and $70
d. be less than $70
e. be greater than $75
D
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A surplus will tend to occur at which price in Figure 4-21?
A. P1 B. P2 C. P3 D. There will be no surplus at the prices shown.
According to purchasing power parity, a rise in inflation in the United States. relative to the rest of the world will lead to
A) a balance of payments surplus. B) a balance of payments deficit. C) an exchange rate appreciation. D) an exchange rate depreciation.
Refer to the above table. What is the absolute price elasticity of demand when a price rises from $8 to $8.50?
A) 5.15 B) 1.94 C) 0.515 D) 0.194
The flows of money compared to the flow of resources, goods, and services in the circular flow model
a. occur only once, then they become stocks (as opposed to flows) b. are equivalent when the number of households equals the number of firms c. move in the same direction as long as payments equal revenue d. always lag behind the flow of resources, goods, and services e. move in the opposite direction