Food stamps are an example of an in-kind transfer payment. a. True b. False ANSWER a
Date: September 9th, 2020
If a monopoly is operating on the demand curve where price elasticity is equal to -3, and MR equals 2, then price is equal to A) 3. B) 2. C) 1. D) 0. ANSWER A
Date: September 9th, 2020
Who said “If it moves, tax it. If it still moves, regulate it. If it stops moving, subsidize it.”? A) Barack Obama B) Ronald Reagan C) Vilfredo Pareto D) Adam Smith ANSWER B
Date: September 9th, 2020
Monopoly is characterized by A) unique products. B) market entry and exit are difficult or impossible. C) non-price competition not necessary. D) All of the above ANSWER D
Date: September 9th, 2020
The fact that a perfectly competitive firm has a perfectly elastic demand curve means A) there is no limit to the firm’s profits. B) there is no limit to the firm’s revenues. C) that it can sell all it wants at any price. D) None of the above ANSWER B
Date: September 9th, 2020
In comparing monopolistic competition to perfect competition, one can conclude that the lack of free entry is the key to having the ability to set price. Indicate whether the statement is true or false ANSWER False. Free entry is the key to driving long-run profit to zero. The key to price-setting ability is the […]
Date: September 9th, 2020
The trench warfare case during World War I is an example of a(n) A) tit-for-tat strategy. B) explicit agreement. C) non-cooperative Nash equilibrium. D) None of the above. ANSWER A
Date: September 9th, 2020
Bob invests $50 in an investment that has a 50% chance of being worth $100 and a 50% chance of being worth $0. From this information we can conclude that Bob is NOT A) risk loving. B) risk neutral. C) risk averse. D) rational. ANSWER C
Date: September 9th, 2020
When discussing rules that governments use to intervene in a market, we can take a ________ approach where we discuss what governments should do, or a ________ approach where we discuss what governments actually do. A) normative; positive B) positive; normative C) optimistic; cynical D) bipartisan; normative ANSWER A
Date: September 9th, 2020
With two-part pricing A) the consumer puts down a deposit and then pays the rest when she picks up the goods purchased. B) the average price paid varies with the number of units purchased. C) the consumer is limited in the number of units that can be purchased. D) consumers are required to buy two […]
Date: September 9th, 2020
