Refer to the above diagram, in which S1 and D1 represent the original supply and demand curves and S2 and D2 the new curves. In this market:
A. supply has decreased and equilibrium price has increased.
B. demand has increased and equilibrium price has decreased.
C. demand has increased and equilibrium price has increased.
D. demand has decreased and equilibrium price has decreased.
Answer: B
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According to Joseph Schumpeter, the theory of creative destruction describes a process by which
A) some new products unleash a gale of destruction that drive other new products out of the market. B) the creation of new products never involves the destruction of old products. C) new products unleash a gale of destruction that drives old products out of the market. D) new products are created by the destruction of capital.
If marginal revenue for a firm is negative,
a. marginal cost must also be negative b. total revenue will decrease if the firm sells more output c. total revenue must also be negative d. the firm should shut down in the short run e. the lost revenue from having to lower its price is less than the additional revenue from higher sales
Which of the following statements is not true?
a. The rate at which Bitcoins grow is very similar to Milton Friedman's k-percent rule. b. Bitcoins can be bought, traded, and earned by solving a time-consuming computer algorithm. c. Bitcoins are becoming more widely accepted by real-world merchants. d. All of these statements are true. None is false.
The equilibrium price and quantity in a monopoly market:
A. causes no welfare costs. B. is efficient. C. causes a loss of total surplus. D. is the same as a perfectly competitive market.