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Microeconomics
The economic inefficiency of a monopolist can be measured by
A.
the number of consumers who are unable to purchase the product because of its high price.
B.
the poor quality of service offered by monopoly firms.
C.
the excess profit generated by monopoly firms.
D.
the deadweight loss.
A.
the number of consumers who are unable to purchase the product because of its high price.
B.
the poor quality of service offered by monopoly firms.
C.
the excess profit generated by monopoly firms.
D.
the deadweight loss.
Microeconomics
A rightward shift in the supply curve will
A.
increase the equilibrium price and decrease the equilibrium quantity.
B.
decrease the equilibrium price and decrease the equilibrium quantity.
C.
increase the equilibrium price and increase the equilibrium quantity.
D.
decrease the equilibrium price and increase the equilibrium quantity.
A.
increase the equilibrium price and decrease the equilibrium quantity.
B.
decrease the equilibrium price and decrease the equilibrium quantity.
C.
increase the equilibrium price and increase the equilibrium quantity.
D.
decrease the equilibrium price and increase the equilibrium quantity.
Microeconomics
In monopolistically competitive markets, economic losses
A.
are maintained through government imposed barriers to exit.
B.
signal some incumbent firms to exit the market.
C.
are never possible.
D.
signal new firms to enter the market.
A.
are maintained through government imposed barriers to exit.
B.
signal some incumbent firms to exit the market.
C.
are never possible.
D.
signal new firms to enter the market.
Microeconomics
Which of the following would increase the equilibrium price of sugar?
A.
less producers
B.
less buyers
C.
less consumer income (assuming sugar is normal)
D.
lower labor costs
A.
less producers
B.
less buyers
C.
less consumer income (assuming sugar is normal)
D.
lower labor costs
Microeconomics
In the long run equilibrium, a typical perfectly competitive firm earns
A.
zero economic profit.
B.
a positive economic profit.
C.
negative economic profit, that is, an economic loss.
D.
zero accounting profit.
A.
zero economic profit.
B.
a positive economic profit.
C.
negative economic profit, that is, an economic loss.
D.
zero accounting profit.
Microeconomics
Assume that the equilibrium price of a doctor's visit is $50, and the government places a price ceiling of $40 on a doctor's visit. The result will be
A.
a surplus
B.
first a shortage then equilibrium
C.
equilibrium
D.
a shortage
A.
a surplus
B.
first a shortage then equilibrium
C.
equilibrium
D.
a shortage
Microeconomics
Which of the following will NOT shift the demand for a good?
A.
a change in input prices
B.
a change in the number of buyers
C.
a change in expectations
D.
a change in income
A.
a change in input prices
B.
a change in the number of buyers
C.
a change in expectations
D.
a change in income
Microeconomics
Which of the following is not a characterisitc of a perfectly competitive market?
A.
There are many sellers in the market.
B.
Firms are price takers.
C.
Goods offered for sale are largely the same.
D.
Firms have difficulty entering the market
A.
There are many sellers in the market.
B.
Firms are price takers.
C.
Goods offered for sale are largely the same.
D.
Firms have difficulty entering the market
Microeconomics
The government imposes a minimum price on gasoline that is above the equilibrium price. You accurately predict that
A.
the law will create an excess supply of gasoline.
B.
gas stations will start refurnishing their stations.
C.
less gasoline will be available to buy.
D.
the law will have no economic impact.
A.
the law will create an excess supply of gasoline.
B.
gas stations will start refurnishing their stations.
C.
less gasoline will be available to buy.
D.
the law will have no economic impact.
Microeconomics
The government imposes a minimum price on gasoline that is above the equilibrium price. You accurately predict that...
