Which of the following would most likely increase the demand for gasoline?
A. The expectation by consumers that gasoline prices will be higher in the future.
B. The expectation by consumers that gasoline prices will be lower in the future.
C. A widespread shift in car ownership from SUVs to hybrid sedans.
D. A decrease in the price of public transportation.
Answer: A
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For a monopolist that produces in the short run and does not price discriminate, price always has to be
a. equal to marginal cost at the profit-maximizing quantity b. equal to marginal revenue at the profit-maximizing quantity c. greater than marginal cost at the profit-maximizing quantity d. less than marginal cost at the profit-maximizing quantity e. less than marginal revenue at the profit-maximizing quantity
Components of economic growth are:
a. physical capital, human capital, and technology. b. physical capital, human capital, and savings. c. education, physical capital, and technology. d. physical capital, working capital, and technology.
If a $500 tax is placed legally (statutorily) on the buyers of new couches and as a result the price of couches at stores rises by $200, the actual burden of the tax
a. falls completely on couch buyers. b. falls completely on couch sellers. c. is $200 on couch buyers and $300 on sellers. d. is $300 on couch buyers and $200 on sellers.
To maximize total surplus with a monopoly firm, a benevolent social planner would choose the level of output where
a. MR = MC. b. MR intersects the demand curve. c. MC intersects the demand curve. d. MR exceeds MC by the greatest amount.