Which of the following statements is false?
a. The monopolist has the ability to control to some degree the price of the product it
sells.
b. The monopolist faces a downward-sloping demand curve.
c. The monopolist is a price taker.
d. The monopoly firm is the industry.
Explain in detail how the legalization of marijuana would be expected to impact the
supply, demand, equilibrium price and quantity for marijuana.
When quantity demanded of a good increases, total revenue
a. increases.
b. decreases.
c. increases, if demand is elastic.
d. increases, if demand is inelastic.
Exhibit 34-9
For country X, the opportunity cost of producing one unit of good A is __________
unit(s) of good B.
a. 2
b. 1/10
c. 1/2
d. 1/3
e. 10
The purchasing power parity theory predicts that changes in the relative price levels of
two countries will affect the exchange rate in such a way that
a. one unit of a nation’s currency will buy more foreign goods than it did before the
change in the relative price levels.
b. one unit of a nation’s currency will buy fewer foreign goods than it did before the
change in the relative price levels.
c. one unit of a nation’s currency will continue to buy the same amount of foreign goods
as it did before the change in the relative price levels.
d. the percentage of depreciation in one currency equals the percentage of appreciation
in the other currency.
Exhibit 24-4
What dollar amounts go in blanks (A), (B), (C), (D), and (E), respectively?
a. $8; $60; $0; $10; and $130
b. $8; $70; $50; $30; and $10
c. $25; $10; $10; $30; and $50
d. $8; $85; $0; $45; and $80
If the demand curve for agricultural products is inelastic, then it would be in the best
interest of farmers as a group to
a. increase output and thereby receive greater revenues.
b. cause the price of their product to decrease.
c. find some way to decrease the quantities of output that are placed on the market for
sale.
d. petition the government to find a way to decrease the demand for their product.
e. a and b
Exhibit 38-1
The yield on bond C is approximately
a. 11.0 percent.
b. 4.8 percent.
c. 3.6 percent.
d. 100 percent.
According to the data provided in this table, what is the slope of the line between points
A and B, if these data were graphed with X on the horizontal axis and Y on the vertical
axis?
a. -0.40
b. -2.50
c. 0.40
d. 2.50
e. none of the above
Suppose that an increase in a nation’s income causes the nation’s residents to buy more
domestic and foreign goods. Given this, if U.S. residents experience an increase in
income, but Mexican residents do not, it is likely that, ceteris paribus,
a. both the U.S. dollar and the Mexican peso will depreciate.
b. both the U.S. dollar and the Mexican peso will appreciate.
c. the U.S. dollar will depreciate and the Mexican peso will appreciate.
d. the U.S. dollar will appreciate and the Mexican peso will depreciate.
A firm in a monopolistic competitive market will produce a level of output at which
a. P < MR.
b. P = MR.
c. P > MR.
d. P = MC.
The resource termed labor consists of the physical, but not the mental, talents that
people contribute to the production process.
a. True
b. False
We take one dollar from a millionaire and give it to a pauper. Assuming a diminishing
marginal utility of money,
a. total utility in the economy must rise.
b. total utility in the economy must fall.
c. total utility in the economy must remain the same.
d. we cannot say whether or not total utility changes.
As evidenced by one of the exhibits in the textbook, union wages are ___________
higher than non-union wages in the same industry.
a. always
b. sometimes
c. rarely
d. never