If a monopolist's marginal revenue is $25 and its marginal cost is $19, then the monopolist should:
A. raise its price.
B. increase its output.
C. decrease its output.
D. leave its output and price unchanged.
Answer: B
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Which of the following will not cause a demand curve to shift position?
a. A doubling of the good's price. b. A doubling of the price of a closely substitutable good. c. A doubling of income. d. A shift in preferences. e. A doubling of both the price of X and the price of Y.
Using the growth accounting equation, if the growth rate of out is 5%, the growth of labor is 3% and the growth of capital is 2% then if α=0.75 then growth of technology can be estimated to be:
A. 4.25%. B. 4.00%. C. 3.00%. D. 2.75%.
One of the advantages of floating exchange rates is that:
a. consumers always know how much imported goods cost. b. businesses always know, in advance, what future exchange rates will be. c. countries are free to pursue their own macroeconomic policies without maintaining exchange rates. d. countries cannot act independently and must thus coordinate their macroeconomic policies. e. the global interest rate tends to decline to the lowest possible level.
Which of the following is a difference between a bond and a stock? a. The owner of a bond can sell it many times, while a stock remains with its first owner
b. Typically, governments and corporations borrow through a bond market, while a stock market is the most common source of funds for households. c. The owner of a bond earns interest on the money that is paid to buy it, while the owner of a stock owns an equity in the company that issues the stock. d. The owner of a bond owns an equity in the company that issues the bond, while the owner of a stock earns interest on the money that is paid to buy it.