Kris wants to purchase a house. She buys newspapers to read the classified advertisements and spends her evenings with realtors looking at houses. Kris has incurred the ________ costs of making a purchase.
A) transactions
B) market
C) buying
D) scale
Ques. 2In the above figure, if a single-price monopolist maximized its profit, the deadweight loss in the market is equal to the area
A) ace.
B) acg.
C) ecg.
D) bch.
Ques. 3In a Lorenz diagram for income, the line of equality shows
A) the most equitable income distribution.
B) how unequally incomes are distributed.
C) how much redistribution occurs.
D) the income distribution if everyone received the same income.
Ques. 4Because Jess didn't have the time to understand the issue, she did not vote on the amendment about clean energy. Jess's behavior demonstrates the economic principle of ________.
A) diminishing marginal utility
B) voting preferences
C) rational ignorance
D) minimum differentiation
Ques. 5If an indifference map for a consumer is made up of straight, negatively sloped lines, the marginal rate of substitution ________ as more of the good on the horizontal axis is consumed.
A) does not diminish
B) diminishes
C) increases
D) More information is needed to answer the question.
Ques. 6Sue consumes only sub sandwiches and Mountain Dew. Subs and Mountain Dew are complements. If the price of a Mountain Dew increases
A) Sue's demand curve for sub sandwiches will shift rightward.
B) Sue will move downward along her demand curve for Mountain Dews.
C) Sue will move upward along her demand curve for Mountain Dews.
D) Both answers A and C are correct.
Ques. 7As output increases, the slope of the curve showing the firm's average fixed cost is
A) first negative, then positive.
B) first positive, then negative.
C) always negative.
D) always positive.
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