When is price fixing among competitors not a violation of the antitrust laws?
A) Price fixing among competitors is always a violation of the antitrust law.
B) when a cartel can maximize profit without behaving like a monopoly
C) when price fixing leads to a more efficient outcome
D) when price fixing does not result in predatory pricing
Ques. 2Emma consumes only tacos and pizza. They are substitute goods for her. The price of a taco falls. Emma will buy ________ tacos and her marginal utility from the last slice of pizza she eats ________.
A) more; does not change
B) more; decreases
C) the same quantity; does not change
D) less; increases
Ques. 3Over the years, the U.S. economy has become increasingly
A) monopolistic.
B) oligopolistic.
C) competitive.
D) cartelized.
Ques. 4If the currency drain increases, the monetary base decreases. Explain whether the previous statement is correct or incorrect.
What will be an ideal response?
Ques. 5In the above figure, if D2 is the original demand curve and the price of a substitute in consumption rises, which price and quantity might result?
A) point a, with price P2 and quantity Q2
B) point b, with price P1 and quantity Q1
C) point c, with price P3 and quantity Q3
D) point d, with price P1 and quantity Q3
Ques. 6The figure above shows depicts the marginal revenue and costs of a perfectly competitive firm. When 170 units are produced, the firm
A) would definitely shut down.
B) would incur an economic loss.
C) would increase its price.
D) has total costs less than 2,720.
Ques. 7As Sam moves rightward along his indifference curve, his marginal rate of substitution
A) is diminishing.
B) is increasing.
C) remains constant.
D) shows the change in his income.
Ques. 8A firm's average total cost is 100, its average variable cost is 90, and its total fixed cost is 1,000. Its output is
A) less than 70 units.
B) between 70 and 120 units.
C) between 120 and 170 units.
D) more than 170 units.
Ques. 9One of the best defenses we have against malaria these days comes from a fern-like weed called wormwood. Fluctuating supply and demand have pushed the plant's price from 155 per kilo one year, to over 1000 the next.
There is a push to set a price ceiling for the plant. Which of the following would NOT occur if there was a price ceiling set below the equilibrium price on wormwood? A) The wormwood market would be allocatively efficient because its price would not fluctuate.
B) A wormwood shortage might occur.
C) A black market for wormwood may be created.
D) There would be an increase in inefficiency in the wormwood market.
Quick Reply
