The above figure shows the market for a particular good. If the market is controlled by a perfect-price-discriminating monopoly, the deadweight loss equals A) C + E. B) A + B + C. C) C. D) zero. ANSWER D
Date: September 9th, 2020
The above figure shows the isoquants for producing steel. When producing between 10,000 and 20,000 tons there are A) increasing returns to scale. B) decreasing returns to scale. C) constant returns to scale. D) economies of scale. ANSWER C
Date: September 9th, 2020
If reckless drivers are more likely to buy automobile insurance than safe drivers are A) a moral hazard has occurred. B) adverse selection has occurred. C) the market for insurance is efficient. D) then automobile insurance will be fairly priced. ANSWER B
Date: September 9th, 2020
Lectures in microeconomics can be delivered either by an instructor (labor) or a movie (capital) or any combination of both. Yet the it gets harder and harder to substitute more movies for an instructor the more movies are already used. Which graph in the above figure best represents the isoquants for lectures in microeconomics when […]
Date: September 9th, 2020
The above figure depicts the Edgeworth box for two individuals, Al and Bruce. If the endowment is at point a, and Bruce has no ability to bargain, the final allocation will be at point A) a. B) b. C) c. D) d. ANSWER D
Date: September 9th, 2020
The above figure shows four different markets with changes in either the supply curve or the demand curve. Which graph best illustrates the market for typewriters after technological advances in computerized word-processing software occur? A) Graph A B) Graph B C) Graph C D) Graph D ANSWER D
Date: September 9th, 2020
The above figure shows three different supply-and-demand graphs. Which graph best represents the market for vacations on Mars? A) Graph A B) Graph B C) Graph C D) None of the above ANSWER A
Date: September 9th, 2020
The above figure shows a graph of the market for pizzas in a large town. At a price of $7, there will be A) excess demand. B) excess supply. C) equilibrium. D) zero demand. ANSWER A
Date: September 9th, 2020
The table in the above figure shows the levels of output resulting from different levels of inputs. At which level of input are there constant returns to scale? A) 400-600 units B) Constant returns to scale exist throughout all levels of production. C) Constant returns to scale do not exist at any level of production. […]
Date: September 9th, 2020
When a unit tax is placed on demanders ____. a. it will be paid entirely by demanders if the demand curve is elastic b. it will have the same effect as a similar unit tax placed on suppliers c. they will pay a larger share than if it was initially placed on suppliers d. they […]
Date: September 9th, 2020
