For the monopoly shown in the figure above, when it maximizes its profit the marginal cost is ...

For the monopoly shown in the figure above, when it maximizes its profit the marginal cost is ________ per unit and the price is ________ per unit.
 
  A) 10; 30
  B) 20; 20
  C) 10; 20
  D) 30; 20.

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Ques. 2

In the figure above, the substitution effect outweighs the income effect in all segments EXCEPT
 
  A) 0a.
  B) 0c.
  C) bc.
  D) cd.

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Ques. 3

Which of the following can lead to a firm being more efficient that a market? A firm can have I. economies of scale. II. economies of scope. III. lower transactions costs.
 
  A) III only
  B) I and II
  C) II and III
  D) I, II and III

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Ques. 4

The Gini ratio is a measure of
 
  A) income inequality.
  B) wealth distribution.
  C) income distribution.
  D) income as compared to wealth.

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Ques. 5

Education
 
  A) does not really add to one's human capital.
  B) does not really affect one's income.
  C) is a major factor affecting one's income.
  D) explains all the differences in male-female incomes.

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Ques. 6

The table above describes the market for paper. The production of paper produces pollution. There are no external benefits. Now suppose a Pigovian tax is successfully implemented and the efficient quantity of paper is produced.
 
  What is the total tax revenue collected by the government per week? A) 120
  B) 840
  C) 1,200
  D) 1,800

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Ques. 7

As a consumer moves along an indifference curve and decreases consumption of the good on the x-axis, the consumer needs ________ of the good on the y-axis to give up an additional unit of the good on the x-axis.
 
  A) less and less
  B) more and more
  C) none
  D) a constant amount

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Ques. 8

Jeremiah spends all of his income on oranges and cookies, which are normal goods. If Jeremiah's income decreases, he will buy ________ oranges and ________ cookies.
 
  His marginal utility from oranges will ________ and his marginal utility from cookies will ________. A) fewer; fewer; decrease; increase
  B) more; more; decrease; decrease
  C) the same quantity of; fewer; remain constant; decrease
  D) fewer; fewer; increase; increase

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Ques. 9

In the short run, a perfectly competitive firm can
 
  A) only make an economic profit.
  B) only make zero economic profit.
  C) only incur an economic loss.
  D) make an economic profit, zero economic profit, or incur an economic loss.