People demand money for all of the following reasons EXCEPT
A. it is a store of value.
B. it generates a rate of return.
C. it is a medium of exchange to make payments.
D. it can meet unplanned expenditures.
Answer: B
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A firm in monopolistic competition ________ influence its price and ________ influence the market average price
A) can; can B) can; cannot C) cannot; can D) cannot; cannot E) can; only in the short run can
Total profit is maximized
A. where the difference between total revenue and total cost is greatest. B. at that output level where marginal revenue equals average cost. C. where total revenue is at a maximum. D. at the point where all variable costs are covered.
A benevolent social planner would prefer that the output of good x be increased from its current level if, at the current level of output of good x,
a. social value = private value = private cost < social cost. b. social cost > private value = social value > private cost. c. social cost = private cost = private value < social value. d. social value = private cost = social cost > private value.
The field of political economy
a. casts aside most of the standard methods of economic analysis. b. is also referred to as the field of public choice. c. is also referred to as the field of macroeconomics. d. produces the conclusion that democratic principles rarely lead to desirable economic outcomes.