A firm that has market power
A) can charge whatever it wants for its product.
B) can charge a price above marginal cost.
C) has positive economic profits.
D) does not lose sales when increasing price.
B
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A large country can gain from imposing a tariff on the import of a good if
A. the part of the tariff paid by the foreign exporters is greater than the losses arising from the production and consumption effects of the tariff in the domestic market B. the tariff is high enough that the country becomes an exporter of the product. C. the tariff drives the quantity imported to zero. D. the tariff revenue collected by the domestic government is equal to the losses caused by the production and consumption effects of the tariff.
Gross fiscal expenditure in a country increased by $100,000 during a certain year. If the marginal propensity to save is 0.5, then real GDP in this country has increased by: a. $125,000. b. $50,000
c. $200,000. d. $100,000.
At points on the short-run aggregate supply curve, but to the right of the long-run aggregate supply curve, resources are:
A. underutilized, making it more likely that the short-run aggregate supply curve will shift down (to the right). B. overutilized, making it more likely that the short-run aggregate supply curve will shift down (to the right). C. overutilized, making it more likely that the short-run aggregate supply curve will shift up (to the left). D. underutilized, making it more likely that the short-run aggregate supply curve will shift up (to the left).
A pure public good is such that
A. both rivalry and exclusivity hold. B. neither rivalry nor exclusivity hold. C. exclusivity holds, but rivalry does not. D. rivalry holds, but exclusivity does not.