The Sherman Act makes it illegal to
A) increase market share.
B) merge firms in the same industry.
C) attempt to monopolize an industry.
D) price below competitors.
Ques. 2The elasticity of the momentary supply curve for any good always equals
A) zero.
B) one.
C) positive infinity.
D) None of the above answers is correct.
Ques. 3The table above gives the cost of producing T-shirts. The total fixed cost is ________ and the marginal cost of increasing production from 5 to 6 T shirts is ________.
A) 20; 6
B) 20; 10
C) 10.40; 8
D) unable to be determined; 8
Ques. 4Which of the following nations spends more per person on healthcare?
A) Switzerland
B) United Kingdom
C) Germany
D) None of the above nations spend more on healthcare.
Ques. 5For the past year, Teddy has had a part-time job at which he is willing to work 30 hours each week. During Teddy's annual review, his boss grants him an 8 percent increase in his wage.
As a result of the wage increase, Teddy is now willing to work 25 hours each week. Teddy's opportunity cost of ________ has risen and because for Teddy the substitution effect of the wage hike is ________ than the income effect. A) work; greater
B) work; less
C) leisure; greater
D) leisure; less
Ques. 6The above table shows the market shares for all the landscaping services in a suburban area. The Herfindahl-Hirschman Index (HHI) equals
A) 65.
B) 900.
C) 1400.
D) 1600.
Ques. 7The marginal rate of substitution is equal to the ________.
A) marginal cost of each good
B) magnitude of the slope of the indifference curve
C) inverse of the slope of the budget line
D) relative price of the two goods
Ques. 8BAE, a British defense company, has the contract to produce Tornado aircraft for the Royal Air Force. The BBC produces high-quality mystery shows for the British government. Both produce at the lowest possible cost.
On a PPF with aircraft and mystery shows on the axes A) BAE and the BBC do not face increasing opportunity costs.
B) BAE and the BBC are achieving production efficiency.
C) BAE and the BBC are producing at a point outside the PPF.
D) the British government is operating outside its PPF.
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