A monopoly firm is a ______________ and faces a __________ sloping demand curve
a. Price taker; horizontal
b. Price searcher; horizontal
c. Price searcher; downward
d. Price taker; downward
c
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Consider an economy that only produces wooden chairs. In 2012, the economy produced 100 wooden chairs priced at $10 each. The nominal GDP of the economy for the year 2012 will be:
A) $10. B) $1,000. C) $100. D) $10,000. Consider an economy that produces only cell phones. In the year 2012, the economy manufactures 275 cell phones, and each cell phone sells at $200. In the year 2013, the economy manufactures 280 cell phones but the price of each cell phone falls to $180.
The average price of gasoline in your neighborhood is $2.15 per gallon
Your neighbor, Diana tells you that you can "save a lot" by frequenting a gas station 20 miles outside your neighborhood where the price of gasoline is $2.06 per gallon However, she cautions you that there are usually long lines at that station. Is her suggestion beneficial to you? A) No, my friend is misled; clearly, the lower-priced gasoline must be of inferior quality and could damage vehicles. B) No, if one factors in the non-monetary opportunity costs (driving time and waiting in line), it could prove more costly to go to the lower-priced gasoline station. C) Yes, the lower price of gasoline at the rival station increases my purchasing power and enables me to consume more of other goods. D) Yes, since gasoline is a necessity for car owners, the total cost savings would be relatively substantial.
One of the conclusions of A. C. Pigou was that
a. a system of mandatory controls is the only effective means to control pollution. b. a system of charges can be an effective means to control pollution. c. pollution will wither away if a socialist system is in place. d. pollution cannot be adequately addressed in a price system.
Recall the Economics in Practice on p. 371: According to a study discussed in the Economics in Practice, ________ matters in terms of an individual's future earnings.
A. class size B. teacher quality C. the age of teachers D. the gender of teachers