The graph below shows the Chamberlin model. The profit maximization level of output for a monopolistically competitive firm is 
A. 0D.
B. 0C.
C. 0A.
D. 0B.
Answer: C
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Youland is hit by a recession. What will be the impact of a countercyclical policy on labor demand in Youland if nominal wages are downwardly rigid?
What will be an ideal response?
Moving upward along a downward sloping straight-line demand curve, as the price of the product goes up
A) the price elasticity of demand does not change. B) the price elasticity of demand goes from being inelastic to being elastic. C) the price elasticity of demand goes from being elastic to being inelastic. D) the price elasticity of demand goes from negative to positive.
For a monopolist, the price effect:
A. is the increase in revenues from selling a greater quantity at a lower price. B. is always outweighed by the quantity effect. C. is the decrease in revenues from selling a greater quantity at a lower price. D. always outweighs the quantity effect.
Why are credit cards not considered part of the money supply?