A country opens up to trade and becomes an exporter of wheat. In the wheat market, consumer surplus will ________, producer surplus will ________, and total surplus will ________
A) decrease; increase; increase
B) increase; decrease; increase
C) decrease; increase; decrease
D) remain unchanged; increase; increase
A
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For the monopolist, marginal revenue is
A) equal to price. B) less than average revenue since price must be lowered to sell additional units. C) greater than price. D) not a consideration in the firm's pricing.
Which of the following would help to avert a healthcare crisis?
a. requiring employers to pick up 100 percent of the healthcare costs for their employees b. discouraging medical savings accounts since these provide additional funds for medical care, and therefore, they are likely to drive up medical prices c. discouraging the purchase of health insurance plans with small co-payments d. structural changes that would increase the competitiveness of the health insurance and medical services markets
In the short run, a firm operating in a competitive industry will shut down if price is
a. less than average total cost. b. less than average variable cost. c. greater than average variable cost but less than average total cost. d. greater than marginal cost.
The population growth rate is 1 percent in Maria’s country and 3 percent in Daniel’s country? Which statement about their countries is most likely true?
a. People in Daniel’s country are generally wealthier than people in Maria’s country. b. Families in Maria’s country have better access to medical care than families in Daniel’s country. c. Women in Maria’s country have lower opportunity costs associated with raising children than women in Daniel’s country. d. Women in Daniel’s country are generally better educated than women in Maria’s country.