Refer to the graph shown. If the price were at the market equilibrium price, the total surplus would be the combination of the areas:
A. A, B, and E.
B. A through F.
C. A through D.
D. E and F.
Answer: B
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Answer the following statement(s) true (T) or false (F)
1. A competitive industry is a viable alternative to a natural monopoly. 2. Patents have ambiguous welfare consequences because they both create monopoly power and promote inventive activity. 3. The competition among firms to acquire the rights to legal barriers to entry helps to reduce the welfare costs of monopoly. 4. Social gain is lowered when a monopoly begins to practice price discrimination. 5. When a simple profit-maximizing monopoly begins to practice second-degree price discrimination, both consumers and the monopoly will benefit.
Which of the following is not a category of state and local government outlays?
A) purchases of goods and services B) grants in aid C) transfer payments D) interest payments
Which of the following is true of credit cards? a. They have eliminated the use of money
b. They are currently the most popular means of payment in the United States. c. They are included in the narrow definition of money, M1. d. They are near-monies. e. They are used to postpone the payment of money.
Investment is considered to be negatively correlated with current real GDP
a. True b. False Indicate whether the statement is true or false