Perfect competition is characterized by all of the following except
A) heavy advertising by individual sellers.
B) homogeneous products.
C) sellers are price takers.
D) a horizontal demand curve for individual sellers.
In the United States, health care spending on people ________ is six times greater than
on people ________.
A) under age 3; over age 65
B) aged 18 to 24; 25 to 44
C) over age 65; aged 18 to 24
D) over age 65; aged 25 to 44
With a monopolist engages in perfect price discrimination, the quantity produced and
sold
A) is lower than the quantity produced and sold if it adopted a single price.
B) is larger than the quantity produced and sold if it adopted a single price.
C) is the same level as that produced and sold if it adopted a single price.
D) could be lower, higher or the same as that produced and sold if it adopted a single
price.
Table 4-3
The table above lists the marginal cost of polo shirts by Marko’s, a firm that specializes
in producing men’s clothing. If the market price of Marko’s polo shirts is $18
A) Marko’s will produce four shirts.
B) producer surplus from the first shirt is $18.
C) producer surplus will equal $22.
D) there will be a surplus; as a result, the price will fall to $7.
Figure 6-6
As price falls from PA to PB, the quantity demanded increases most along D1; therefore,
A) D1 is unit elastic.
B) D1 is more inelastic than D2 or D3.
C) D1 is more elastic than D2 or D3
D) D1 is elastic at PA but inelastic at PB.
Figure 18-6
Figure 18-6 shows the Lorenz
curves for Islandia and Syldavia.
If area X = 2,060, area Y = 240, and area Z= 2,700, calculate the Gini coefficient for
Syldavia.
A) 0.05
B) 0.12
C) 0.46
D) 0.85
What are earnings per share equal to?
A) the last dividend payment made
B) total dividend payments plus retained earnings divided by outstanding stock shares
C) the amount by which the stock’s market price has increased in the last year
D) revenues divided by the number of stockholders
On the 45-degree line diagram, for points that lie below the 45-degree line,
A) planned aggregate expenditure is greater than GDP.
B) planned aggregate expenditure is less than GDP.
C) planned aggregate expenditure is equal to GDP.
D) planned aggregate expenditure is less than aggregate income.
Firms disclose financial statements in ________ and in ________.
A) periodic filings to the federal government; annual reports to shareholders
B) daily filings to the federal government; daily reports to shareholders
C) monthly reports to shareholders; 5-year balance statements to the board of directors
D) weekly filings with the SEC; monthly reports to the Fed
Economists refer to the conflict between the interests of shareholders and the interests
of top management as
A) a stock-equity problem.
B) a liability problem.
C) a principal-agent problem.
D) a financial intermediary problem.
Izzy Amador is a highly talented tattoo artist. She has chosen to specialize in tattoo art
because of all of the followingexcept
A) her tattoos are highly esteemed by tattoo lovers who are willing to pay very high
prices.
B) for her, this is the most lucrative way to purchase the products that she wants to
consume.
C) her opportunity cost of pursuing another career is very low.
D) she obviously has a comparative advantage in tattoo art.