A monopolistic competitor produces 1,200 units of a good at an average cost of $120 per unit. If the price charged is $135, calculate his total profit
A) $13,500
B) $1,100
C) $18,000
D) $2,000
C
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A steady-state equilibrium refers to:
A) an equilibrium in which the stock of physical capital remains constant over time. B) an equilibrium in which the inequality remains constant over time. C) an equilibrium in which the GDP per capita remains constant over time. D) an equilibrium in which the poverty rate remains constant over time.
Of the following, demand is likely to be the most elastic for
A) food. B) cars. C) Sony Blu-ray players. D) personal computers.
Assume the required reserve ratio is 10 percent and the FOMC orders an open-market sale of $50 million in government securities from member banks. If the oversimplified money multiplier is assumed, then the money supply will
A. increase by $500 million. B. increase by $100 million. C. decrease by $100 million. D. decrease by $500 million.
A tax imposed on the part of income that households spend is known as a
a. luxury tax b. flat tax c. consumption tax d. income tax e. value tax