Which of the following leads to an underallocation of resources to a specific economic activity?
A) external costs
B) external benefits
C) marginal costs
D) effluent benefits
Answer: B
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Consider the following statements when answering this question. I. If no consumer has a kinked demand curve for CDs, then the market demand curve for CDs cannot be kinked either. II
If at a price of $10, every consumer has inelastic demand, then at that price the market demand for CDs will be inelastic too. A) I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) I and II are false.
The rate at which one good can be converted technologically into another is called
A) the marginal rate of transformation. B) the marginal rate of substitution. C) the marginal product of labor. D) the rate of conversion.
A monopolistic producer supplying raw materials to two industries one with a lower price elasticity of demand and the other with a high price elasticity of demand, practices _____ to prevent its low price elastic consumers (who have more elastic demands) from reselling its products to high price consumers (who have less elastic demands)
a. vertical integration b. price discrimination c. double marginalization d. price control
Upwardly mobile workers who may be between jobs are considered
a. frictionally unemployed b. structurally unemployed c. cyclically unemployed d. unemployable e. discouraged workers