Which point or points on the above figure illustrate a short-run equilibrium?
A. Point A
B. Point B
C. Point C
D. Points A and C
Answer: B
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In the above table, the efficient level of output can be achieved through a per unit subsidy of
A) zero. B) $20. C) $60. D) $120.
Regarding U.S. antitrust activity, the rule of reason was expressed in the
a. Standard Oil case. b. Robinson-Patman Act. c. Clayton Act. d. ALCOA case.
In a simplified banking system with a 20 percent required reserve ratio, a $1,000 open-market sale by the Fed would cause the money supply to:
a. increase by $200 b. decrease by $200. c. decrease by $5,000 d. increase by $5,000.
Suppose that Kansas farmers can grow wheat more cheaply than can Texas farmers. In the interest of efficiency, what is the desirable outcome?
A. Pass a law in Kansas mandating a minimum price for wheat equal to what is charged by Texas farmers. B. Allow the Kansas farmers to sell their wheat for a lower price. C. Pass a law in Texas mandating a maximum price for wheat equal to what is charged by Kansas farmers. D. Have Texas residents boycott Kansas wheat.