How do the price, output, consumer surplus, economic profit, and total surplus for a single-price monopoly compare to that of a competitive industry?
What will be an ideal response?
For the monopoly, price is higher, output is lower, consumer surplus is less, economic profit is larger, and total surplus is smaller relative to a competitive industry.
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While smoking is on the decline in the United States, China is still puffing away madly. That's not because the government is eager to protect its citizens from the hazards of smoking It's because China is eager to protect its own tobacco industry which is a state monopoly. Why did China announce in 2009 that it won't allow foreign companies to build new cigarette factories or enter joint ventures?
A) because China is concerned about the negative effects of smoking B) because China wants to protect the economic profits its state monopoly makes C) because China wants to protect jobs D) because China regulates the tobacco industry
Based on the data in this table,
U ? ? period 1 6 1 4 period 2 8 0 3.2 period 3 8 2 4.4 If the natural rate of unemployment is steady at 7 percent, and, in period four, there is no price shock and unemployment is 8 percent, then the inflation rate in period 4 will be ________ percent. A) 4.4 B) 3.6 C) 3.4 D) 1.6 E) none of the above
Net domestic product is
A. The market value of all final goods and services produced in the economy after adjusting for depreciation. B. Equal to GDP minus indirect business taxes. C. The total market value of all goods produced in the period. D. Equal to national income minus depreciation.
Which of the following statements about "inside information" is FALSE?
A. The government never imposes fines or other penalties for abuse of inside information. B. Profits can be made using inside information. C. It is information that is not available to the general public. D. It is illegal to knowingly use inside information when trading stocks.