The price charged by a monopolist is socially inefficient because the price
A) exceeds the true marginal cost of the resources used.
B) is less than the opportunity cost of the resources used.
C) puts the monopolist into a higher tax bracket.
D) is too low.
Answer: A
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A major problem in projecting with a trend line is that
A) only straight-line projections can be accommodated. B) it is valid only if the trend is upward. C) it will not forecast turning points in activity. D) it is a very complex method of forecasting.
In the United States since 1970, the poverty rate for blacks has been about:
a. 1?2 percentage points higher than the poverty rate for whites. b. twice the poverty rate for whites. c. three times the poverty rate for whites. d. five times the poverty rate for whites.
The services rendered by a special agent with the Federal Bureau of Investigation is included in which expenditure category of GDP?
a. consumption b. investment c. government purchases d. net exports
When a firm is earning economic profit, this indicates the firm is
a. increasing the value of the resources that it is using. b. reducing the value of the resources that it is using. c. supplying the market with a low quality product. d. creating less value for consumers than another firm that is currently earning losses.