Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?
A) a fall in income if used cars are an inferior good
B) an increase in the wage rate paid to used car salespeople
C) neither of the above because the question suggests a violation of the law of demand
D) neither of the above because the question suggests a violation of the law of supply
Ques. 2If a monopoly is operating along the portion of its demand curve where marginal revenue is positive, its
A) total revenue increases when price decreases.
B) total revenue decreases when price decreases.
C) total revenue remains the same when price decreases.
D) total revenue is zero.
Ques. 3The table above shows some data that describe Tom's T-Shirts' total product when Tom's has 1 sewing machine. Diminishing marginal returns begin when the ________ is employed.
A) second worker
B) fifth worker
C) fourth worker
D) third worker
Ques. 4Jake spends 200 on fried chickens and Pepsi. The price of a fried chicken is 5 and Pepsi is 2.50 per bottle. With the quantity of Pepsi being measured along the vertical axis, the slope of Jake's budget line is ________ per fried chicken.
A) 0.5 of a Pepsi
B) -0.5 of a Pepsi
C) 2 Pepsis
D) -2 Pepsis
Ques. 5Keesha consumes only milkshakes and burgers. At her consumer equilibrium, which of the following is TRUE when Keesha can buy any portion of a unit of a milkshake or burger?
A) The marginal utility per dollar from a milkshake will exceed the marginal utility per dollar from a burger if she likes burgers more than milkshakes.
B) The marginal utility per dollar from a burger will exceed the marginal utility per dollar from a milkshake if she likes burgers more than milkshakes.
C) The marginal utility per dollar will be the same for each good.
D) The marginal utility will be the same for each good.
Ques. 6The simplest prisoners' dilemma is a game that, in part, requires
A) two players who are able to communicate with each other.
B) two players who are unable to communicate with each other.
C) monopolistic competition.
D) an oligopoly with one very large firm.
Ques. 7In the above figure, if output is 10 units, then the total deadweight loss is
A) 5.
B) 10.
C) 20.
D) 60.
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