As a monopolist's profit maximizing quantity moves further away from the competitive industry's profit maximizing quantity,
A. the larger the deadweight loss in the market.
B. the larger the profits of the monopoly.
C. the smaller the deadweight loss in the market.
D. the harder it is for the firm to stay as a monopoly.
Answer: A
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Refer to Figure 2-6. If the economy is currently producing at point C, what is the opportunity cost of moving to point B?
A) 13 thousand hammers B) 30 thousand wrenches C) 23 thousand hammers D) 10 thousand wrenches
A tax multiplier equal to –4.30 would imply that a $100 tax increase would lead to a
a. $430 decline in national income b. $430 increase in national income c. 4.3 percent increase in national income d. 4.3 percent decrease in national income e. 43 percent decrease in national income
Which of the following is correct?
a. A higher price level shifts money demand rightward. b. When money demand shifts rightward, the interest rate rises. c. A higher interest rate reduces the quantity of goods and services demanded. d. All of the above are correct.
Goods and services provided by state and local governments are:
A. included in GDP at cost. B. excluded from GDP because they are not sold in markets. C. included in GDP at market prices. D. excluded from GDP because they are publicly provided.