If the long-run industry supply curve in a perfectly competitive market slopes upward, then very likely input prices will ____ as industry output expands.
a. increase
b. decrease
c. remain constant
d. first increase and then decrease
QUESTION 2The main transfer programs of the U.S. government include each of the following, except:
a. social insurance.
b. cash welfare or public assistance.
c. in-kind transfers.
d. veterans' benefits.
e. employment programs.
QUESTION 3Consumer surplus increases when the market price of a commodity declines.
Indicate whether the statement is true or false
QUESTION 4Which of the following is true of marginal revenue?
a. Marginal revenue equals total revenue divided by quantity.
b. Marginal revenue is the slope of the supply curve of a firm.
c. Marginal revenue is the slope of the total cost curve when profit is maximized.
d. Marginal revenue equals the change in total revenue due to an additional unit of output.
e. Marginal revenue equals the income earned by selling stocks on the margin.
QUESTION 5If a perfectly competitive industry uses a large proportion of the available inputs in a resource market, then the long-run market supply curve for the industry will most likely be:
a. vertical.
b. horizontal.
c. upward sloping.
d. downward sloping.
QUESTION 6Transfer programs are so named because they transfer:
a. the burden of poverty alleviation from the church to the state.
b. the poverty from the country side to the city.
c. the responsibility for maintaining minimum standards of living from the federal government to state governments.
d. income from the relatively high-income people to relatively low-income people.
e. the incidence of poverty from predominantly ethnic groups to the majority white population.
QUESTION 7Sellers in a geographically centralized market have higher transaction costs compared to those in a decentralized market.
Indicate whether the statement is true or false
QUESTION 8Assume that a firm's marginal revenue curve intersects the rising portion of the marginal cost curve at 100 units of output. At this output level, a profit-maximizing firm's total cost is 1,000 . If the price of the product is 10 per unit, the firm will earn an economic profit of:
a. zero.
b. 400.
c. more than zero but less than 100.
d. 100.
e. more than 100.
QUESTION 9If a perfectly competitive industry uses only a small share of the available inputs in a resource market, then the long-run market supply curve for the industry will most likely be:
a. vertical.
b. horizontal.
c. upward sloping.
d. downward sloping.
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