In the above figure, while moving along the line showing the relationship between household income and expenditure
A) household expenditures are held constant.
B) household income is held constant.
C) the interest rate is held constant.
D) no variable is held constant.
Ques. 2Currently, the United States is both a net borrower and a debtor nation.
Indicate whether the statement is true or false
Ques. 3The government can use taxes to
A) change production in a market with an external cost to the efficient amount.
B) change production in a market with an external benefit to the efficient amount.
C) increase production.
D) decrease price.
Ques. 4The table above lists the market shares of the twenty makers of personal computers. Based upon the Herfindahl-Hirschman Index for this industry, the Justice Department would
A) regard the industry as highly concentrated.
B) be against any two firms merging.
C) consider the market oligopolistic.
D) regard the industry as competitive.
Ques. 5In the United States, the poorest 50 percent of households own about ________ of total wealth.
A) 1 percent
B) 10 percent
C) 20 percent
D) 30 percent
Ques. 6The figure above shows a perfectly competitive firm. The firm is operating; that is, it has not shut down. The firm produces
A) 20 units of output and makes zero economic profit.
B) 20 units of output and incurs an economic loss.
C) 10 units of output and makes zero economic profit.
D) 10 units of output and incurs an economic loss.
Ques. 7Which of the following statements about the above figure is TRUE?
A) Point A is equally preferred to point C.
B) Point B is equally preferred to point C.
C) Point C is preferred to point A.
D) Point A is preferred to point C.
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