If a monopolistically competitive firm is suffering losses in the short run:
A. the exit of competing firms will cause price to drop, but not affect the firm's demand curve.
B. the exit of competing firms will shift the firm's demand to the right.
C. the exit of competing firms will shift the firm's demand to the left.
D. the exit of competing firms will cause price to rise, but not affect the firm's demand curve.
Answer: B
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A customer at an auction who obtains an antique chair by outbidding several other prospective purchasers
A) may be paying more than the opportunity cost of obtaining the chair. B) pays a price other than opportunity cost. C) pays more than its real cost of his bid exceeds the original cost of the chair plus the cost of running the auction. D) pays the opportunity cost of the last disappointed bidder.
Refer to Figure 2-5. If the economy is currently producing at point Y, what is the opportunity cost of moving to point X?
A) 9 million tons of paper B) 5 million tons of paper C) 5 million tons of steel D) 19 million tons of steel
Which of the followingcorrectlyis the money multiplier?
a. The required reserve ratio. b. 1/(1 – the required reserve ratio). c. 1/(required reserve ratio). d. 1/(1 – MPC).
Which statement about public assistance is false?
A. It is aimed solely at the poor. B. It has failed completely. C. It has not ended poverty. D. It has fostered a permanent underclass.