Monopolists are criticized because they are inefficient. What is meant by this statement?
a. Monopolists charge too high a price.
b. Monopolists don't innovate enough to control pollution.
c. Monopolists produce a large quantity of waste.
d. Monopolists usually don't produce at the minimum of the ATC.
e. Monopolists could use their resources better elsewhere.
d
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Economists believe that individuals act as if they are motivated: a. primarily by the opinions of their peers
b. primarily by human emotions. c. primarily by self-interest. d. only by concern for the larger community.
Assume your company produces good X using only two inputs, capital (K) and labor (L). Also, assume L is measured on the vertical axis and K on the horizontal one. If the prices of inputs are PK=$30 and PL=15, and your company is behaving efficiently, what is the slope of the isoquant at the current input mix?
A. 1/2 B. -1/2 C. 2 D. -2
The Environment Ministry in Japan proposed a new carbon tax to meet Japan's obligations to reduce carbon dioxide emissions under the Kyoto Treaty. The tax would be levied on producers and importers of fossil fuels and raise the cost of using fossil fuels. How do most economists view a tax such as this?
A. They do not believe any government intervention is necessary because the invisible hand of the market will correct the problem. B. They prefer voluntary programs to taxes because they reduce the role of compulsion. C. They prefer direct regulation to taxes because taxes create deadweight loss. D. They support taxes on pollution as a way of prompting decision makers to consider all costs.
Which of the following is NOT true about subprime mortgage loans:
A. They played a central role in the financial crisis of 2007-2008 B. They were encouraged by the Federal government for many years before the financial crisis C. They had always been discouraged by the government, and even banned in some cases D. They were considered high-risk loans because the borrowers had poor credit ratings