Suppose a monopolist is at the profit-maximizing output level. If the monopolist sells another unit of output:
A. both producer surplus and consumer surplus increase.
B. both producer surplus and consumer surplus decrease.
C. producer surplus rises but consumer surplus falls.
D. producer surplus falls but consumer surplus rises.
Answer: D
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The most important, most convenient, and most flexible way in which the Federal Reserve affects the supply of bank reserves is through:
A. conducting open-market operations. B. changing interest rates. C. changing bank reserve requirement ratios. D. changing the Federal Reserve discount rate.
GDP is used in an attempt to
A) calculate the profitability of a country. B) measure the economic performance of a country. C) determine the overall well-being of a country. D) figure out the prices of all goods and services exchanged in the legal economy. E) guide entrepreneurs toward more profitable investment decisions.
For a common resource, the marginal social cost of the resource is ________ the marginal private cost
A) greater than B) equal to C) less than D) not comparable to
Often bar owners will require that patrons stand in a line to get a wristband entitling them to pay a preferred price for drinks if they arrive early to the bar
The wristbands are typically tamper- resistant and can be easily identified if patrons have been switching wristbands with other customers. What is the bar owner concerned about and why does he make his patrons wear these bands?