Compared to a perfectly competitive firm, a monopolist:
a. charges a higher price.
b. produces lower output.
c. fails to achieve an efficient allocation of resources.
d. all of these.
d
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A noisy party that keeps neighbors awake is an example of a
A) negative production externality. B) positive production externality. C) negative consumption externality. D) positive consumption externality. E) Both answers B and C are correct.
Which of the following is not discussed as a job of a vehicle currency?
A) cross-border bank transactions B) international money market funds C) international bonds and notes D) All of the above are vehicle currency uses.
Economists have said that deregulation of the electric utility industry might lead to increased prices in the short run, but prices will fall in the long run. In this context:
a. the short run means the middle of next year. b. the short run means the period after all adjustments have been made, and the quantities of all resources have been varied as necessary. c. the long run means after all adjustments have been made, the quantities of all resources have been varied as necessary, and new market entrants begin producing electricity. d. the short run means the period after new firms begin producing electricity. e. the long run means approximately ten years.
Which of the following is an unintended side effect of protectionist policies to protect domestic jobs?
a. The consumers are paying higher prices to the protected industry, so they will purchase less product from that industry, and jobs are lost in the protected industry. b. The protected product is sold to other firms, who must now pay a higher price for a key input, so those firms will lose sales to foreign producers who do not need to pay the higher price. c. The protected product is sold to other firms, who must now pay a higher price for a key input, so those firms will increase sales from foreign producers. d. The consumers are paying higher prices to the protected industry, so they will purchase more products from unprotected industries, and jobs are gained in the unprotected industry.