Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Unemployment and inflation are important determinants of short-run material welfare,
whereas productivity growth is an important determinant of long-run material
well-being.
a. True
b. False
Productivity in manufacturing sectors has risen faster than in service sectors.
a. True
b. False
Oligopolists seldom change prices, because they don't like change.
a. True
b. False
Table 11-2
In Table 11-2, marginal revenue at the profit-maximizing output is how much?
a. $5
b. $7
c. $8
d. $110
Tariffs are more desirable than quotas if a government wants to increase revenues and
reduce benefits to inefficient exporters.
a. True
b. False
A firm that is operating at a loss may continue to operate for a while because of costs
that it will still have to pay even if production ceases.
a. True
b. False
The introduction of a tax in a perfectly competitive marketplace that is originally in
equilibrium will lower total surplus.
a. True
b. False
The most important way in which inefficiency occurs is
a. producing more military goods instead of civilian goods.
b. limiting economic growth by limiting capital spending.
c. unemployment of labor and other resources.
d. producing outside the production possibilities frontier.
e. All of the above are correct.
Demand is said to be price elastic at a point on a demand curve if a
a. 1 percent rise in price reduces the quantity demanded by more than 1 percent.
b. 1 percent rise in price reduces the quantity demanded by less than 1 percent.
c. 1 percent rise in price reduces the quantity demanded by more than 10 percent.
d. 10 percent rise in price reduces the quantity demanded by less than 10 percent.
Which of the following carries out the distribution process by rationing goods on the
basis of preferences and relative incomes?
a. Administered system
b. Government
c. Price system
d. Central planning
Figure 10-2
Figure 10-2 shows demand and short-run cost curves for a perfectly competitive firm.
At its profit-maximizing level of output, the firm's short-run TC is represented by area
a. ADFO.
b. BGHC.
c. BGIO.
d. ADGIO.
Demand curves often do not remain stationary; they shift because of changes in other
variables.
a. True
b. False
Speculators in the stock market
a. aggravate instability in the market.
b. create shortages of certain stocks.
c. smooth out fluctuations in the market.
d. reduce the profits of firms that issued the stock.
Figure 5-9
In Figure 5-9, the consumer's marginal rate of substitution at his optimum choice of X
and Y is
a. −1.
b. 16.
c. 8.
d. −8.
The U.S. debt problem is caused by the government only; individuals don't go into debt.
a. True
b. False
