Advertising by the monopolist
A. is not done because the monopolist has the only supply of the product and doesn’t need to advertise.
B. would have the effect of shifting its demand curve to the left.
C. may lead to expanded production by the monopolist.
D. makes no sense because there are no substitute commodities available to consumers.
Answer: C
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The difference between savings and saving
A) is nonexistent. B) is that savings is measured in real terms while saving is measured in nominal terms. C) is that savings is a stock concept and saving is a flow concept. D) is that savings occurs when consumption does not and saving is used to purchase consumption goods.
Who receives the goods and services produced in the United States depends largely on
A) how income is distributed. B) what goods and services are produced. C) government redistribution. D) how the goods and services are produced.
If consumers paid the full price of medical services instead of using health insurance and third-party payers to cover part of the cost, the quantity of medical services provided would increase
Indicate whether the statement is true or false
Which of the following characterizes the Fed's ability to prevent recessions?
A) The Fed is incapable of changing aggregate demand through its monetary policy tools. B) The Fed is able to "fine tune" the economy and entirely eliminate recessions. C) The Fed is able to eliminate the business cycle and achieve absolute price stability. D) The Fed is able to keep a recession shorter and milder than it would otherwise be.