An average cost pricing rule for a natural monopoly sets the price ________ the marginal cost, thereby ________ a deadweight loss
A) below; avoiding
B) below; creating
C) above; avoiding
D) above; creating
D
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There has been an increase in the demand for chicken. This change can be shown graphically as a:
A. shift in the demand curve to the right. B. shift in the demand curve to the left. C. movement along the demand curve to the right. D. movement along the demand curve to the left.
When economists speak of changes in GDP measured in constant dollars, they mean that:
a. money GDP is constant. b. the price level is constant. c. a price index has been used to adjust money GDP for the effects of inflation. d. the growth rate of money GDP has been adjusted for changes in population.
Given an exchange rate of 120 yen = $1, what is the U.S. dollar price of 1 yen?
a. $0.025 b. $0.0083 c. $120 d. $0.0012 e. $1
Economists believe that individuals act as if they are motivated: a. primarily by the opinions of their peers
b. primarily by human emotions. c. primarily by self-interest. d. only by concern for the larger community.