The figure above shows the market for milk. If the government pays the milk producers a subsidy and production increases to 300 gallons per day
A) the market is efficient because the marginal social benefit from the last gallon of milk exceeds its marginal social cost.
B) the market is efficient because the total social benefit from milk exceed the total social cost.
C) there is a deadweight loss because the marginal social benefit from the last gallon of milk exceeds its marginal social cost.
D) there is a deadweight loss because the marginal social cost of the last gallon of milk exceeds its marginal social benefit.
Ques. 2The maximum economic profit that can be made by a duopoly that colludes is equal to the ________.
A) economic profit made by duopolists who cheat
B) normal profit made by an oligopoly
C) economic profit made by a monopoly
D) normal profit made by firms in perfect competition
Ques. 3________ account for the largest portion of all firms; ________ account for most of the total revenue received by businesses.
A) Proprietorships; partnerships
B) Proprietorships; corporations
C) Partnerships; corporations
D) Corporations; proprietorships
Ques. 4In 2009, Germany's capital account was -135 million. This implies that
A) Germany invested more in other countries than those countries invested in Germany.
B) Germany's currency must have appreciated during 2009.
C) Germany imported more goods from its trading partners than it exported.
D) Germany's official settlements account in 2009 must have been positive.
Ques. 5The above figure shows the market for anti-freeze. The government imposes the sales tax shown in the figure on sellers. What is the amount of the tax?
A) 1 per gallon
B) 2 per gallon
C) 3 per gallon
D) 4 per gallon
Ques. 6If the price of aluminum used to make bicycles increases, the price of a bicycle rises because of a
A) rightward shift of the demand curve for bicycles.
B) rightward shift of the supply curve of bicycles.
C) leftward shift of the demand curve for bicycles.
D) leftward shift of the supply curve of bicycles.
Ques. 7Total variable cost
A) increases as output increases.
B) does not change as output changes.
C) decreases as output increases.
D) initially decreases and then increases as output increases.
Ques. 8Roxie's Movie Theatre is the only one in town. The table above gives the demand schedule for movies.
If Roxie's is a single-price monopoly and the marginal cost of a movie is 6, Roxie's will charge ________ a movie and will sell ________ movie tickets a week. A) 15; 100
B) 12; 200
C) 6; 400
D) 9; 300
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