The income effect of a price change refers to the impact of a change in
A) income on the price of a good.
B) the quantity demanded when income changes.
C) the price of a good on a consumer's purchasing power.
D) demand when income changes.
C
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Per capita real GDP is a questionable indicator of the state of the economy because it does not account for:
a. growth of national income. b. changes in inflation. c. income distribution. d. changes in the size of the population. e. changes in the level of output.
At his current level of output, a monopolist has an MR of $10, an MC of $6, and an economic profit of zero. If the market demand curve is downward sloping and his marginal cost curve upward sloping, the monopolist
a. is producing his profit-maximizing level of output. b. could increase his profit by increasing his output. c. could increase his profit by increasing his price. d. should exit the market if he has positive fixed cost.