Answer the following questions true (T) or false (F)
1. If the market for a product begins as perfectly competitive and then becomes a monopoly, there will be a reduction in economic efficiency and a deadweight loss.
2. Suppose a monopoly is producing its profit-maximizing output level. Now suppose the government imposes a lump-sum tax on the monopoly, independent of its output. As a result the monopolist will increase the price of its product to cover its higher cost.
3. Producers in perfect competition receive a smaller producer surplus than a producer in a monopoly.
1. TRUE
2. FALSE
3. TRUE
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Any method of producing a good or service is ________. It ________ the maximum profit that a firm can make
A) an information constraint; always increases B) a technology; always increases C) a technology; limits D) an information constraint; limits
Comment on the following statement: "If one player in the game does not have a dominant strategy, it is impossible to predict the outcome of the game."
What will be an ideal response?
Using the information in the table shown, what is the 1999 salary in 2009 dollars?
A. $174,136
B. $132,692
C. $105,292
D. $170,844