The main difference between the price-quantity graph of a perfectly competitive firm and a monopoly is
A) that the competitive firm's demand curve is horizontal, while that of the monopoly is downward sloping.
B) that a monopoly always earns an economic profit while a competitive company always earns only normal profit.
C) that a monopoly maximizes its profit when marginal revenue is greater than marginal cost.
D) that a monopoly does not incur increasing marginal cost.
A
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The services produced by spouses who cook, clean, and otherwise maintain homes are not counted in the gross domestic product because
A) services are not tangible goods. B) there is no accepted and reliable way to measure their value. C) they do not add to the wealth of the nation. D) this would entail double-counting, since such spouses usually receive free room and board. E) while they are useful services, they do not represent productive labor.
Suppose that in 2010, the producer price index increases by 1.5 percent. As a result, economists most likely will predict that
a. GDP will increase in 2011. b. the producer price index will increase by more than 1.5 percent in 2011. c. interest rates will decrease in the future. d. the consumer price index will increase in the future.