In the figure above, the curve labeled X can be a
A) monopoly's demand curve.
B) monopoly's marginal revenue curve.
C) perfectly competitive firm's demand curve.
D) perfectly competitive firm's marginal revenue curve.
Ques. 2The figure above shows a firm in a perfectly competitive market. The firm's supply curve is the curved line linking
A) point a to point c and stopping at point c.
B) point b to point d and continuing on past point d along the MC curve.
C) point b to point f and stopping at point f.
D) point c to point e and continuing on past point e along the ATC curve.
Ques. 3The less elastic the supply, the
A) less likely the government is to tax the product.
B) less likely the government is to impose a price ceiling.
C) larger the fraction of any tax imposed on the product that is paid by the suppliers.
D) less elastic the demand.
Ques. 4Dana wants to try working as an independent contractor this summer. She has a 50 percent chance that she will make 10,000 and 50 percent chance that she will make nothing. What's Dana's expected income from taking this job?
A) 10,000
B) 7,000
C) 5,000
D) zero
Ques. 5The above figure shows the Lorenz curves for four different countries. If country C implemented a policy of redistribution from rich to poor, its Lorenz curve would
A) move toward country B's.
B) move toward country D's.
C) become positively sloped.
D) move above the line of equality.
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