Which of the following market structures results in a deadweight loss in the long run?
a. Perfect competition and monopolistic competition
b. Monopolistic competition and monopoly
c. Perfect competition and monopoly
d. All of these market structures lead to a deadweight loss in the long run
b
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What is one reason activists might lobby the government for regulation limiting the production of a product to less than would normally be in a perfectly competitive market?
A) They value consumer surplus more than producer surplus. B) They value producer surplus more than consumer surplus. C) They seek to avoid future regulation. D) They seek to minimize total surplus.
Assume the United States and Canada have the same amount of resources. In a given time period, the United States can produce 3 tons of steel or 300 tons of wheat. Canada can produce 4 tons of steel or 400 tons of wheat. This means that
A. The United States has a comparative advantage in steel. B. Canada has an absolute advantage in both steel and wheat. C. Canada has a comparative advantage in steel. D. The United States has an absolute advantage in steel.
Refer to the following graph.
If this country is producing between point G and Q, it will gain by ________ its production of good A and importing more ________.
A. increasing; good A B. decreasing; good B C. decreasing; good A D. increasing; good B
Which of the following is an advantage of starting a new business as a partnership?
A) The owners have limited personal liability. B) Compared to a corporation, a partnership has fewer government rules and regulations to comply with. C) Business profits are not taxed. D) A partnership can easily attain additional funding.