Other things being equal, the behavior of a monopolist differs from that of a competitive industry in that
A) the monopolist does not attempt to maximize economic profit.
B) the monopolist hires more labor.
C) the monopolist restricts output and hires less labor.
D) the monopolist must consider fixed costs in deciding the optimal level of output to produce in the short run.
Answer: C
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Which of the following statements would be true of an economy that can be characterized as being to the left of the IS curve?
A) There is an excess demand for commodities at the existing interest rate. B) There will be a tendency for the level of output to decrease. C) There is an excess supply of commodities at the existing interest rate. D) There will be a tendency for interest rates to fall.
A difference between a share of stock in a corporation and a corporate bond is that
A) the share of stock is a legal claim while the bond is not. B) the bond owner has voting rights within the corporation whereas the stockholder does not. C) the bond owner is entitled to receive a fixed annual coupon payment plus a lump-sum payment at the bond's maturity date, whereas the stockholder is entitled to a share of future profits. D) stocks are issued in return for funds that are lent to the corporation.