Normative economics is more important than positive economics.
A. True
B. False
C. Uncertain
C. Uncertain
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Compare the consumer surplus in a perfect competition with that of a single-price monopoly and with a price-discriminating monopoly
What will be an ideal response?
Government regulation is best applied in cases_____
a. where the marginal benefit of the regulation is greater than the cost of the bureaucracy b. where imposed rules can increase efficiency more than govt. production would c. where the marginal benefit of regulation improves the cost efficiency of the producers d. where imposed rules can increase efficiency more than a public/private partnership would
The aim of antitrust policy is to
a. provide adequate incentives for inventors and entrepreneurs. b. prevent firms from acquiring or exercising undue market power. c. prevent firms from becoming very large. d. regulate the prices charged by oligopolies.
An effective minimum wage
a. imposes a price ceiling on the wages of various categories of low-skill workers. b. increases the demand for low-skill workers. c. makes it easier for low skill workers to find jobs. d. increases the earnings of some low-skill workers while reducing the employment and training opportunities available to others.