A price searcher (monopolist, monopolistic competitor, etc.) definitely faces
a. a perfectly elastic demand curve for the product it sells.
b. a downward-sloping demand curve for the product it sells.
c. a perfectly elastic supply curve of factors.
d. an upward-sloping supply curve of factors.
e. a perfectly inelastic demand curve for the product it sells.
The Wheeler-Lea Act of 1938
a. made interlocking directorates illegal.
b. set up the Federal Trade Commission (FTC) to deal with “unfair methods of
competition.”
c. made monopolization of trade a misdemeanor.
d. prohibited suppliers from offering special discounts to large chain stores without
offering them to everyone else.
e. empowered the FTC to deal with false and deceptive acts or practices.
Which of the following statements is true?
a. For a monopoly firm, its marginal revenue curve and demand curve share two points
in common.
b. A monopoly firm is a price taker; it takes the price government sets.
c. A firm that maximizes revenue automatically maximizes profit.
d. Maximizing revenues is the same as maximizing profits only when the firm has no
variable costs.
e. a and d
There are few sellers and many buyers in the
a. perfectly competitive market structure.
b. monopolistic competitive market structure.
c. oligopoly market structure.
d. monopoly market structure.
If variable X rises as a result of variable Y falling, then X and Y have an inverse
relationship.
a. True
b. False
When a prospective employer asks a graduating college senior for evidence of his grade
point average (GPA), the employer is
a. discriminating against the graduating senior.
b. screening the graduating senior.
c. probably just trying to intimidate the graduating senior.
d. b and c
In the production possibilities framework, economic growth is depicted by the PPF
a. shifting leftward (toward the origin).
b. shifting rightward (away from the origin).
c. becoming a straight line rather than a bowed outward curve.
d. becoming bowed outward rather than a straight line.
Refer to Exhibit 24-1. If the product is produced under single-price monopoly, what do
profits equal at the profit maximizing level of output?
Exhibit 24-1
a. area 0P1BQ1
b. area BCA
c. area P1P2CB
d. area P2CAP1
e. none of the above
Refer to Exhibit 24-10. The deadweight loss triangle is what area?
Exhibit 24-10
a. GFC
b. HGD
c. GCD
d. DCE
e. BFG
Refer to Exhibit 25-8.A profit-maximizing monopolistic competitive firm that produces
at the level of output where MR = MC will set the price at
Exhibit 25-8
a. $100 per unit.
b. $90 per unit.
c. $80 per unit.
d. $60 per unit.
e. $50 per unit.
Supply curves are usually upward sloping.
a. True
b. False
One of the key characteristics of oligopoly is that
a. firms are independent of each other.
b. firms face different cost conditions.
c. each firm is aware that its actions will influence other firms and that the actions of
the other firms affect it.
d. it is easy to enter the industry.
e. none of the above
Total utility
a. is the total amount of satisfaction derived from consuming a particular quantity of a
good.
b. for quantity Y can be calculated by summing the marginal utilities of each unit that
comprises quantity Y.
c. is the sum of the amounts of utility derived from consuming each unit of a good.
d. a and b
e. all of the above
Compared to the perfectly competitive firm, the monopolist faces a demand curve that
is ___________________ elastic because there are ______________ substitutes for the
product produced by the monopolist.
a. less; fewer
b. less; more
c. more; fewer
d. more; more
Is it possible for mandatory seatbelt laws to increase vehicle fatalities?
a. Yes, if the number of accidents increases by a greater percentage than the number of
deaths per accident decreases.
b. No, because wearing seatbelts decreases the number of deaths per accident.
c. No, because wearing seatbelts decreases the number of accidents.
d. There is not enough information to answer the question.
On the basis of the law of demand, it is more likely that a person will lose his temper
when the price of losing his temper is low than when it is high.
a. True
b. False
As discussed in the textbook, various studies in the past have shown that there are
________________ degrees of separation between any two people in the world.Social
media would be expected to _______________ the number of degrees of separation,
making the world ________________.
a. 5 to 7; reduce; ‘smaller”
b. 8 to 10; reduce; “bigger”
c. 5 to 7; raise; “bigger”
d. 8 to 10; raise; “bigger”
The side effect of an action that increases the well-being of others is called
a. an augmentation.
b. an elasticity.
c. a passive benefit.
d. a positive externality.