________ natural resources are natural resources that can be used repeatedly, and ________ natural resources are natural resources that can be used only once.
A) Nonrenewable; renewable
B) Renewable; hydrocarbon
C) Renewable; nonrenewable
D) Non-fossil; fossil
Ques. 2Explain the role of advertising in monopolistic competition. Describe how advertising by all firms in a monopolistically competitive industry impacts a firm's ATC curve, its MC curve, its demand curve, and its MR curve.
What will be an ideal response?
Ques. 3If all inputs are increased by 5 percent and output increases by 8 percent, then the
A) firm experiences constant returns to scale.
B) long-run average cost curve slopes downward.
C) long-run average cost curve shifts downward.
D) firm experiences diseconomies of scale.
Ques. 4Consider a market in which there is an external benefit. A private subsidy paid to producers can be used to arrive at the efficient market equilibrium because the subsidy will
A) increase the quantity produced.
B) decrease the supply of the good.
C) increase the price demanders pay.
D) decrease demand.
Ques. 5The above figure shows Jane's budget line and two of her indifference curves. Which of the following happens to Jane's budget line if there were an increase in her monthly dining-out budget?
A) It would bend toward the origin, becoming more convex.
B) It would bend away from the origin, becoming more concave.
C) It would shift rightward and not change its slope.
D) It would shift leftward and not change its slope.
Ques. 6The social interest theory of regulation predicts that the political process will seek to minimize
A) producer surplus.
B) consumer surplus.
C) total surplus.
D) deadweight loss.
Ques. 7Why does the profit-maximizing level of production occur at the point where marginal revenue equals marginal cost?
What will be an ideal response?
Ques. 8Which of the following is NOT a government-run income maintenance program?
A) Social Security
B) unemployment compensation
C) temporary Assistance of Needy Households
D) life insurance
Ques. 9Why would a firm in a monopolistically competitive industry ever advertise?
What will be an ideal response?
Quick Reply
