A single-price monopolist will produce the output at which ________.
A) marginal revenue equals marginal cost
B) demand is perfectly inelastic
C) marginal revenue is zero
D) demand is inelastic but not perfectly inelastic
Ques. 2In the above figure, the budget line would rotate in the direction indicated as a result of a
A) rise in the price of a book.
B) fall in the price of a book.
C) rise in the price of a movie.
D) decrease in income.
Ques. 3The marginal cost of production that is borne by the entire society is the
A) marginal private cost.
B) marginal social cost.
C) marginal external cost.
D) None of the above answers is correct.
Ques. 4The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. At Kaffenia's efficient quantity of doughnuts
A) total consumer surplus is zero.
B) total producer surplus is zero.
C) consumer surplus exceeds producer surplus by the greatest possible amount.
D) the sum of consumer surplus and producer surplus is maximized.
Ques. 5In 2008 the money wage rate in Ireland increased by 4 percent while the price level increased by 8 percent. As a result, Ireland's
A) short-run aggregate supply curve shifted leftward.
B) short-run aggregate supply curve shifted rightward.
C) long-run aggregate supply curve shifted rightward.
D) short-run and long-run aggregate supply curves shifted rightward.
Ques. 6The above figure shows the market for neckties after the government has imposed a tax. How much government revenue is generated by the tax?
A) 1,000.00 per month
B) 800.00 per month
C) 500.00 per month
D) 400.00 per month
Ques. 7Which of the following goods is best described as being sold in a monopolistically competitive market?
A) automobiles
B) wheat
C) fast food
D) postage stamps
Ques. 8In the table above, if the wage rate is 12.00 per hour, the profit-maximizing number of workers is
A) 2.
B) 3.
C) 4.
D) 5.
Ques. 9If velocity is 6 and the quantity of money is 2 trillion, what is nominal GDP?
A) 12 trillion
B) 6 trillion
C) 3 trillion
D) 333 billion
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