________ economists believe that the economy is self-regulating and always at full employment.
A) Keynesian
B) Monetarist
C) Classical
D) All
Ques. 2Which of the following statements applies to a single-price monopolist?
A) In order to maximize profits, the monopolist will produce an amount of output that lies in the elastic range of its demand.
B) In order to maximize profits, the monopolist will produce an amount of output that lies in the inelastic range of its demand.
C) In order to maximize profits, the monopolist will produce where its demand is unit elastic.
D) In order to maximize profits, the monopolist will produce an amount of output in the inelastic range of its supply.
Ques. 3Fatz Confectionery is a candy company that operates at the risk of unlimited liability for its many owner in case, for instance, all of its former employees win a class action lawsuit because of sugar-lung developed over decades of working the
Thus Fatz is a A) proprietorship.
B) partnership.
C) either of the above.
D) neither of the above.
Ques. 4A decrease in ________ decreases the demand for money.
A) the discount rate
B) real GDP
C) the interest rate
D) the quantity of money
Ques. 5If the price of its product just equals the average variable cost of production for a competitive firm,
A) total revenue equals total fixed cost and the firm's loss equals total variable cost.
B) total revenue equals total variable cost and the firm's loss equals total fixed cost.
C) total fixed cost is zero.
D) total variable cost equals total fixed cost.
Ques. 6Private goods are those for which consumption is
A) rival and excludable.
B) rival and nonexcludable.
C) nonrival and excludable.
D) nonrival and nonexcludable.
Ques. 7The figure above shows the market for coffee. When the efficient quantity of coffee is produced, the marginal social benefit from the last pound is
A) 1.00.
B) 2.50.
C) 3.00.
D) 4.00.
Ques. 8The government of Healthyland imposes a tax on sellers of salt. The tax is 0.10 per pound. With no tax, the market price of salt is 0.40 per pound. The demand for salt is perfectly inelastic, and the elasticity of supply is 1.5.
With the tax, the price that sellers of salt in Healthyland receive and keep is A) 0.40 per pound.
B) 0.35 per pound.
C) 0.45 per pound.
D) 0.50 per pound.
Quick Reply
