Ceteris paribus, in which of the following cases would we expect economic profits to be greatest?
a. an unregulated monopolist who is able to price discriminate
b. an unregulated monopolist who is unable to price discriminate.
c. a regulated monopolist required to charge a price no greater than marginal cost.
d. a regulated monopolist required to charge a price no greater than average cost.
a
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The market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, where both quantities are measured in millions of gallons per year. What is the producer surplus at the competitive market equilibrium?
A. $1.5 million B. $4.5 million C. $9 million D. $13.5 million
Most of the increase in total money supply between 1860 and 1920 was due to:
a. sustained economic growth. b. the growth of bank deposits. c. an increase in greenbacks. d. new discoveries of gold and silver.
If the world price of steel is greater than the U.S. "no-trade" domestic equilibrium price of steel, the United States:
a. will not produce steel. b. will demand steel from the rest of the world. c. will supply steel to the rest of the world. d. will not trade in steel. e. will have a shortage of steel in the domestic market.
Which of the following statements best describes Keynes’ viewpoint of individual markets?
a. He argued that individual markets for goods and services were appropriate and useful, regardless of the level of aggregate demand. b. He argued that individual markets for goods and services were appropriate and useful, but that sometimes that level of aggregate demand was just too low. c. He argued that individual markets for goods and services were appropriate and useful, but that sometimes that level of aggregate demand was just too high. d. He argued that individual markets for goods and services were appropriate and useful, but only when the level of aggregate demand was low.