The marginal social cost is :

The marginal social cost is
 
  A) equal to the marginal private cost plus the marginal external cost.
  B) equal to the marginal private cost minus the marginal external cost.
  C) the same as the marginal private cost.
  D) the same as the marginal external cost.

---

Ques. 2

The best example of a good sold in a monopolistically competitive market is
 
  A) pizza.
  B) the local newspaper.
  C) sewer services.
  D) peaches.

---

Ques. 3

In what type of market is a cartel possible?
 
  A) a market in which there are only a few firms and barriers to entry exist
  B) a market in which firms sell a homogeneous good
  C) a market in which firms sell a differentiated good
  D) a market in which there are many firms

---

Ques. 4

Usharani consumes 35 apples a week and 14 loaves of bread. Apples cost 1 each and bread costs 2 per loaf. Usharani is maximizing his utility and finds that the marginal utility from his 35th apple
 
  A) equals his marginal utility from his 14th loaf of bread.
  B) is twice his marginal utility from his 14th loaf of bread.
  C) is half his marginal utility from his 14th loaf of bread.
  D) is such that his total utility from apples equals his total utility from bread.

---

Ques. 5

The distribution of income in the United States is skewed so that the mode level of household income is ________ the median household income and the median household income is ________ than the mean household income.
 
  A) less than; less than
  B) less than; greater than
  C) greater than; greater than
  D) greater than; less than

---

Ques. 6

The above figure shows the market for neckties after the government has imposed a tax. How much deadweight loss results from this tax?
 
  A) 250.00
  B) 200.00
  C) 150.00
  D) 50.00

---

Ques. 7

Which of the following is FALSE for a profit-maximizing single-price monopolist?
 
  A) P = MC
  B) MC = MR
  C) P > MR
  D) None of the above because they are all true.

---

Ques. 8

When your income increases
 
  A) your budget line shifts rightward and its slope does not change.
  B) your budget line shifts leftward and its slope does not change.
  C) the slope of your budget line increases.
  D) the slope of your budget line decreases.