The unregulated, single-price monopolist illustrated in the figure above has a total revenue of
A) 8.00 per day.
B) 16.00 per day.
C) 36.00 per day.
D) 40.00 per day.
Ques. 2A bank can only use its excess reserves to make loans, while required reserves can only be used to buy U.S. government securities. Explain whether the previous statement is correct or incorrect.
What will be an ideal response?
Ques. 3Lizzie's preferences are shown in the figure above. Lizzie is just as happy to have ________ as she is to have ________.
A) 4 comic books and 12 cookies; 6 comic books and 12 cookies
B) 2 comic books and 12 cookies; 11 comic books and 8 cookies
C) 2 comic books and 8 cookies; 3 comic books and 5 cookies
D) 4 comic books and 12 cookies; 8 comic books and 8 cookies
Ques. 4At the beginning of World War II, a rationing system was established in the United States. Ration stamps or cards were issued for a variety of commodities such as canned milk and gasoline.
To receive a gasoline ration card, a person had to certify a need for gas. The ration cards ranged from the most limited A card which only allowed 3 to 4 gallons per week to the most generous X card, which allowed the carrier to buy an unlimited amount of gasoline. A government entity, the War Price and Rationing Board, decided who received and A or an X card. Gasoline cards were allocated through A) command.
B) market price.
C) majority rule.
D) force.
Ques. 5In a monopolistically competitive industry
A) firms can make an economic profit in the long run because of barriers to entry.
B) the firms can never make an economic profit.
C) if firms are making an economic profit, new firms enter the industry.
D) firms can make an economic profit in the long run because of product differentiation.
Ques. 6When the government prohibits certain kinds of market behavior such as monopoly and monopolistic practices it generally does so through
A) regulatory agencies such as the Interstate Commerce Commission or the Federal Communications Commission.
B) antitrust law.
C) the police powers of the states.
D) use of the capture theory of regulation.
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