If a monopolist increases sales from 10 to 11 by lowering its price from $40 to $38, its marginal revenue is:
A. $400.
B. $2.
C. $418.
D. $18.
Answer: D
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Refer to Common Property II. Suppose the common property becomes privately owned. If the owner charges a competitive entrance fee for the right to use the property, social gain will equal
The following questions refer to the accompanying diagram, which shows the benefits and costs associated with the use of a common property.
a. area C + D + F + G + I.
b. area F + G + H + I.
c. area A + B + C + D + F + G + I.
d. area A + B + C + D + E + F + G + H + I.
Refer to Figure 16-7. Given that the economy has moved from A to B in the graph above, which of the following would be the appropriate fiscal policy to achieve potential GDP?
A) decrease interest rates B) increase government spending C) contractionary fiscal policy D) increase taxes
In which of the following years was a tax cut ineffective in stimulating aggregate demand?
a. 1964 b. 1975 c. 1981 d. 1999
Cash held by a bank is sometimes called:
A. vault cash. B. fractional reserves. C. token money. D. legal tender.