In the presence of positive external benefits, the efficient price to charge parents for the education of their children is
A. greater than the market price.
B. less than the market price.
C. always zero.
D. always positive.
Answer: B
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If wages and prices adjust rapidly, we would expect expansionary monetary policy to be
A) more likely to affect the unemployment rate. B) more likely to reduce the natural rate of unemployment. C) less likely to affect the unemployment rate. D) less likely to result in a vertical short-run Phillips curve.
A noisy monopoly
A) will be regulated by the Federal Trade Commission until it reduces its noise emissions. B) sells products under its own label for a low price, and sells the virtually identical product with the same quality under a private label for a higher price. C) sells products under its own label for a high price, and sells the virtually identical product with the same quality under a private label for a lower price. D) leverages the Lemon Law to sell both good and poor quality goods for the same price.
Refer to the graph above. If the price is P3, then total revenue is represented by areas:
A. E + F + G. B. B + C + D + E + F + G. C. A + B + C + D + E + F + G. D. B + C + D.
Refer to the graphs shown. Deadweight loss is the least with the imposition of a given per-unit tax on producers in graphs:
A. C and D. B. B and C. C. B and D. D. A and D.