In the figure above, 10 percent of income in country C is distributed to the
A) richest 10 percent of the households.
B) poorest 10 percent of the households.
C) poorest 30 percent of the households.
D) poorest 70 percent of the households.
Ques. 2In the above figure suppose there is only one milk producer who chooses to restrict milk production to two million gallons per day.
What is the size of the deadweight loss? (Hint: It is equal to the triangular area of consumer and producer surplus that is lost because of the reduction in output.) A) 12.5 million
B) 6.25 million
C) 2.25 million
D) none of the above
Ques. 3The above figure shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. There is a marginal external ________ of ________ per ton.
A) benefit; 200
B) benefit; 100
C) cost; 200
D) cost; 100
Ques. 4The firm's demand for labor is derived directly from ________.
A) the wage rate
B) the supply of labor
C) labor's cost
D) labor's value of marginal product
Ques. 5In the above figure, if the price is 4 per unit, how many units will a profit maximizing perfectly competitive firm produce?
A) 0
B) 5
C) 20
D) 30
Ques. 6Suppose that during 2009, the actual real GDP of Chile was 3.5 billion pesos at the same time the potential GDP was 3.4 billion pesos. What sort of equilibrium existed in Chile?
What will be an ideal response?
Ques. 7The figure above shows a monopoly's total revenue and total cost curves. The monopoly's economic profit is zero if it produces
A) 0 units of output.
B) 5 or 20 units of output.
C) 15 units of output.
D) none of the above
Ques. 8The table gives the demand and supply schedules for cookies. The government now levies a 0.30 tax on cookies. As a result, the price of a packet of cookies increases by ________ and the tax revenue collected is ________ a week.
A) 0.20; 24
B) 0.10; 9
C) 0.20; 20
D) 0.30; 30
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