Compare the outcome in a market with a single-price monopoly to that in a perfectly competitive market
What will be an ideal response?
The monopoly charges a higher price and produces less output than in a perfectly competitive market. The monopoly creates a deadweight loss by producing less than the efficient quantity of output, whereas a perfectly competitive market produces the efficient quantity of output and so has no deadweight loss. The monopoly decreases consumer surplus and increases producer surplus from what they would be if the market is perfectly competitive.
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When per capita real GDP is increasing, real output is growing:
A. more rapidly than prices. B. more rapidly than population. C. less rapidly than prices. D. less rapidly than population.
Institutions that channel funds from people who have them to people who want them are called:
A. financial intermediaries. B. corporations. C. the Federal Reserve. D. governmental agency.