The above figure illustrates a single-price unregulated monopolist. If the monopolist maximizes its profit, the deadweight loss equals ________.
A) 10,000
B) 20,000
C) 45,000
D) 40,000
Ques. 2The Lorenz curve in the above figure implies that
A) income is equally distributed.
B) the lowest fifth of households account for less than 20 percent of income.
C) the highest fifth of households account for less than 20 percent of income.
D) the lowest fifth of households account for more than 20 percent of income.
Ques. 3In the short-run, real GDP can be greater than or less than potential GDP because in the short run the money wage rate is fixed.
Indicate whether the statement is true or false
Ques. 4If the exchange rate falls from 120 yen per dollar to 110 yen per dollar, the dollar has depreciated.
Indicate whether the statement is true or false
Ques. 5Which of the following always lowers the equilibrium price?
A) an increase in both demand and supply
B) a decrease in both demand and supply
C) an increase in demand combined with a decrease in supply
D) a decrease in demand combined with an increase in supply
Ques. 6With barriers to the entry of new firms
A) a cartel is guaranteed to earn an economic profit greater than zero.
B) a cartel's members have no incentive to cheat.
C) the cartel will likely earn an economic profit greater than zero.
D) industry supply will expand if the firms form a cartel.
Ques. 7In the above figure, the slope across the arc between a and b is
A) 2/5.
B) 1.
C) 3/2.
D) 5/2.
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