How will the price and output of a monopolist compare with perfect competition?
a. The output of the monopolist will be too large and the price too high.
b. The output of the monopolist will be too large and the price too low.
c. The output of the monopolist will be too small and the price too high.
d. The output of the monopolist will be too small and the price too low.
c
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Before the Industrial Revolution, standards of living differed
A) greatly over time and across countries. B) little over time, but differed greatly across countries. C) greatly over time, but differed little across countries. D) little over time and across countries.
Which of the following is not a characteristic of pollution permits?
a. Prices are set by supply and demand. b. Allowing firms to trade their permits reduces the total quantity of pollution beyond the initial allocation. c. Real-world markets for pollution permits include sulfur dioxide and carbon. d. Firms for whom pollution reduction is very expensive are willing to pay more for permits than firms for whom pollution reduction is less expensive.
In general, financial assets that have a(n) ________ amount of risk have a ________ rate of return.
A. lower; higher B. equal; higher C. higher; lower D. higher; higher
Suppose Country A, a labor-abundant country, produces only drink and furniture. The following equations illustrate the prices and costs of drink and furniture in the country, where the numbers indicate the amounts of labor and land needed to produce a unit of drink and furniture. 'W' is the wage rate and 'r' is the rental rate of land.Price of drink = 1w + 2rPrice of furniture = 2w + 1rAccording to this information, which of the following statements is true?
A. Labor is used relatively intensively in the production of furniture. B. The opportunity cost of producing furniture is higher than the opportunity cost of producing drink in Country A. C. The inputs are used in the same proportion in producing both commodities. D. The land to labor ratio in the production of furniture is higher than that in the production of drink.