When monopolists perfectly price discriminate, they
A. attempt to capture consumer surplus as profit.
B. charge different prices to different buyers.
C. can eliminate the deadweight loss to society of a monopoly.
D. All of the above are correct.
Answer: D
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The law of increasing opportunity costs causes the production possibilities curve to:
a. be a straight line. b. slope upwards. c. have a bowed-out shape. d. shift inward.
In microeconomics, which of the following is synonymous with decreasing returns of scale?
a. monopoly b. economies of scale c. diminishing returns d. diseconomies of scale
If the United States, at the point where it is currently producing, must give up the production of 500 bicycles (B) to produce 20 additional tractors (T) with the same resources, the opportunity cost of producing 5 tractors is _______ bicycles.
A) 5 B) 20 C) 100 D) 125
If most shocks to the economy are ________ shocks, then ________
A) aggregate demand; inflation stabilization policy will also stabilize activity in the short-run B) permanent aggregate supply; inflation stabilization policy will also stabilize activity in the short-run C) temporary aggregate supply; inflation stabilization policy has no impact on economic activity in the long-run D) all of the above E) none of the above