A pure monopoly is not allocatively efficient because at the profit-maximizing level of output ________.

Suppose that when the price of good X changes, the quantity of good Y demanded remains the same. The cross price elasticity of demand is

A) zero. B) positive. C) negative. D) either positive or negative.

If the Fed decides to keep interest rates low when there is a large budget deficit, economists conclude that the Fed is

A. monetizing the debt. B. neutralizing the effects of the deficit. C. correcting the deficit for inflation. D. resisting the effects of the deficit.