A risk-averse person's marginal utility of wealth
A) increases as wealth increases.
B) decreases as wealth increases.
C) is constant.
D) is negative.
Ques. 2The table above shows the demand and costs for a single-price monopolist. The firm can maximize its profit by setting its price at
A) 30 per unit.
B) 35 per unit.
C) 40 per unit.
D) 45 per unit.
Ques. 3The figure above shows Sam's budget line. Which of the following combinations of gasoline and coffee are not available to Sam?
A) 40 gallons of gasoline and 0 pounds of coffee
B) 32 gallons of gasoline and 4 pounds of coffee
C) 8 gallons of gasoline and 8 pounds of coffee
D) 16 gallons of gasoline and 16 pounds of coffee
Ques. 4Based on the production and revenue data in the above table, if the wage rate is 20 per worker, how many workers will be hired?
A) 5
B) 4
C) 3
D) 2
Ques. 5As output increases, marginal cost will eventually
A) increase because of the law of increasing returns.
B) increase because of the law of diminishing returns.
C) decrease because of the law of diminishing returns.
D) decrease because of the law of increasing returns.
Ques. 6In the figure above, income is most unequally distributed
A) in Country A.
B) in Country B.
C) in Country C.
D) in one of the nations, but without more information, it is not possible to determine in which country income is distributed most unequally.
Ques. 7Which of the following outcomes is NOT a result of a tax imposed on sellers of gasoline?
A) Supply decreases, a deadweight loss is created, and the price rises.
B) The market becomes less efficient and the government collects the tax revenue.
C) Demand does not change, the price rises, and consumer surplus decreases.
D) Demand decreases, the market becomes more efficient, and the price rises.
Ques. 8A market structure in which a small number of firms compete is called
A) perfect competition.
B) monopolistic competition.
C) oligopoly.
D) monopoly.
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