If price and quantity are not at their equilibrium positions, then
A. government must intervene.
B. a move to another position will help everyone.
C. it is possible to reallocate so that some people are better off without harming others.
D. a move to another position will not hurt anyone.
Answer: C
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The Phillips curve represents the Fed's short-run choices between inflation and unemployment
a. True b. False
Because natural monopolies have a declining average cost curve, regulating natural monopolies by setting price equal to marginal cost would
a. cause the monopolist to operate at a loss. b. result in a less than optimal total surplus. c. maximize producer surplus. d. result in higher profits for the monopoly.
In Figure 9.5, a movement from Point A to Point C would result from
A. An improvement in expectations for future sales. B. A decrease in the interest rates. C. A decrease in disposable income. D. An improvement in technology.
To maximize profits, the firm in Figure 10.3 will produce:
A. Q1. B. Q2. C. Q3. D. Q4.