Refer to Figure 15-14. From the monopoly graph above, identify the following:
a. The profit maximizing price
b. The profit maximizing quantity
c. The area representing deadweight loss
d. The area representing the transfer of consumer surplus to the monopoly
a. Price = P3
b. Quantity = Q1
c. Deadweight loss = area C + D
d. Transfer of consumer surplus to the monopoly = area A
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The expansion of 2002 and beyond was due, at least in part to
a. interest rate increases. b. increases in housing wealth. c. increases in investment spending. d. large reductions in federal spending. e. increases in taxes.
What is the marginal net benefit of producing the twentieth unit?No. units producedTotal RevenueTotal Costs000101204020200100302701704031026050330370
A. -2 B. -5 C. 2 D. 8
A black market is a market in which
A. goods are sold at outlet prices. B. sales take place exclusively at outlet prices. C. sales taxes are effectively doubled. D. goods are traded at prices above their legal maximum prices.
Which of the following is a tenet of supply-side economics?
A. High marginal tax rates severely discourage work, saving, and investment. B. Increases in social security taxes and other business taxes shift the aggregate supply curve to the right. C. The Federal Reserve should adhere to a monetary rule that limits increases in the money supply to a 5 percent annual rate. D. Transfer payments increase incentives to work.