Refer to the above figure. A unit tax has been placed on the good. The consumer pays what amount of the tax?
A) none of the tax
B) P2 - P0
C) P2 - P1
D) P1 - P0
Ques. 2The opportunity cost of providing a public good to an additional individual is
A) infinite.
B) zero.
C) impossible to determine.
D) high because of the exclusion principle.
Ques. 3Which of the following describes monopolistic competition?
A) homogeneous products
B) P = MR = MC
C) Advertising plays a key role.
D) There is only one seller in the industry.
Ques. 4According to the above table, the four-firm concentration ratio of this industry is
A) 69.2 percent.
B) 35.1 percent.
C) 66.7 percent.
D) 67.5 percent.
Ques. 5Which of the following federal agencies is NOT engaged in social regulation?
A) Environmental Protection Agency
B) Federal Trade Commission
C) Food and Drug Administration
D) Federal Deposit Insurance Corporation
Ques. 6A movement along a demand curve is
A) a change in demand and can be caused by a change in consumers' income.
B) a change in the quantity demanded and is caused by a change in the price of the good.
C) a change in the quantity demanded and can be caused by a change in consumers' income.
D) a change in demand and is caused by a change in the price of the good.
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