With an optimal two-part tariff,
A) consumer surplus equals producer surplus.
B) all consumer surplus is transformed into profit.
C) consumers maximize consumer surplus.
D) the firm earns zero profit.
Economists played a key role in the development of merger guidelines by the
Department of Justice and the Federal Trade Commission in 1982. These guidelines
have three main parts. What are these parts?
A) concentration ratios; the Herfindahl-Hirschman Index; market standards
B) concentration standards; concentration ratios; competitive analysis
C) economic analysis; political analysis; dynamic analysis
D) market definition; measure of concentration; merger standards
An economy that has interactions in trade or finance with other economies is referred to
as
A) an open economy.
B) a closed economy.
C) a trade-balanced economy.
D) a net foreign investment economy.
The key idea of the aggregate expenditure model is that in any particular year, the level
of ________ is determined mainly by the level of aggregate expenditure.
A) frictional unemployment
B) export spending
C) government spending
D) GDP
If actual inflation is less than expected inflation, actual real wages will be ________
expected real wages and unemployment will ________.
A) greater than; rise
B) greater than; fall
C) less than; rise
D) less than; fall
To maintain a monopoly, a firm must have
A) a perfectly inelastic demand.
B) an insurmountable barrier to entry.
C) marginal revenue equal to demand.
D) few competitors.
Suppose that in 2013, real GDP grew in Estonia by 3% and the population increased by
5%. Therefore, in 2013, Estonia experienced
A) economic growth, but not an increase in living standards.
B) economic growth and an increase in living standards.
C) no economic growth, but an increase in living standards.
D) no economic growth and no increase in living standards.
Discouraged workers are classified by the BLS as
A) part of the labor force.
B) out of the labor force.
C) unemployed.
D) employed.
E) part-time employees.
Hewlett-Packard will not raise the prices of its personal computers without first
considering how Dell might respond. This is evidence of
A) interdependence.
B) collusion.
C) cutthroat competition.
D) price fixing.
In a diagram showing the average total cost and average variable cost curves, the
minimum point of the average total cost is
A) at the same level of output as the minimum point of the average variable cost.
B) at a larger level of output than the minimum point of the average variable cost.
C) at a lower level of output than the minimum point of the average variable cost.
D) at the same level of output as the maximum of the total product curve.
The opportunity cost of being unemployed tends to be the highest in which of the
following countries?
A) Canada
B) the United States
C) France
D) the United Kingdom