For a monopolist, the quantity effect:
A. is the increase in revenues from selling a greater quantity at a lower price.
B. is the decrease in revenues from selling a greater quantity at a lower price.
C. is always outweighed by the price effect.
D. always outweighs the price effect.
A. is the increase in revenues from selling a greater quantity at a lower price.
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Explain the relationship among the capital stock, gross investment, net investment, and depreciation
What will be an ideal response?
Scarcity:
a. is a problem only in the poorer countries of the world. b. can be solved by rapid advances in technology. c. is a problem that exists in every economy. d. is not a problem for the very rich.
The aggregate demand curve shows:
a. how the equilibrium level of aggregate expenditure changes in response to changes in production. b. the amount people spend at different real GDP levels. c. the positive relationship between the price level and real GDP. d. the negative relationship between aggregate expenditure and real GDP. e. how the equilibrium level of aggregate expenditure changes as the price level changes.
If one borrower fails to repay a loan,
a. most banks will have serious problems. b. a bank will attempt to sell the loan. c. it will not affect a diversified bank d. the bank will report this to the borrower's employer.