The welfare loss associated with the outcome in a colluding oligopoly is:
A. smaller than that of a perfectly competitive outcome.
B. the same as that of a perfectly competitive outcome.
C. smaller than that of a competitive oligopoly.
D. None of these statements is true.
Answer: D
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At the output where the combined amounts of consumer and producer surplus are largest
A. marginal benefit exceeds marginal cost by the greatest amount. B. consumer surplus exceeds producer surplus by the greatest amount. C. the areas of consumer and producer surplus necessarily are equal. D. the maximum willingness to pay for the last unit of output equals the minimum acceptable price of that unit of output.
The manufacturer of Beanie Baby dolls used quarterly price data for 2005 I - 2013 IV (t = 1, ..., 36) and the regression equationPt = a + bt + c1D1t + c2D2t + c3D3tto forecast doll prices in the year 2014. Pt is the quarterly price of dolls, and D1t, D2t, and D3t are dummy variables for quarters I, II, and III, respectively. 
At the 2 percent level of statistical significance, is there a statistically significant trend in the price of dolls?
A. Yes, because 3.33 > 0.02. B. Yes, because 0.800 > 0.02. C. Yes, because 0.0022 < 0.02. D. No, because 0.0022 > 0.02. E. Yes, because 0.240 > 0.02.
As a result of an increase in the payroll tax that employers must pay on their employees? wages, employers reduce the starting wage for new employees. This is an example of
A. tax incidence. B. tax shifting. C. a regressive tax. D. tax avoidance.
The taxicab fare in Newville is regulated. The fare currently charged is $6 a ride. Newville taxicab drivers want to obtain government's permission to lower the fare, which they think will increase their total revenue
From this we can conclude that the drivers believe that the demand for taxicab rides is A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic.