If gas prices today were $4.00 per gallon, in terms of history, this would be
A. not an all-time high but rather high in inflation-adjusted terms.
B. about the long-term historical average in inflation-adjusted terms.
C. an all-time high in nominal terms and inflation-adjusted terms.
D. an all-time high in inflation-adjusted terms but not nominal terms.
Answer: D
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A competitive employer will hire inputs up to the point where the
A. price of the input equals the marginal product of the input. B. price of the input equals the price of the output. C. price of the input equals the marginal revenue product of the input. D. marginal product of the input reaches a maximum.
Which of the following is a cost of providing federal deposit insurance?
a. Banks have more incentive to monitor loans with the result that their profits have declined and many have failed. b. There are no significant costs to the insurance, only benefits. c. Banks have less incentive to act responsibly with the result that they have made riskier loans and some have failed. d. The insurance makes it more difficult to regulate banks. e. The insurance makes it more difficult for the fed to run open market operations.
Based on the graphic for perfect competition versus monopoly, the producer surplus for perfect competition is ______ the welfare for perfect competition.
a. greater than
b. less than
c. equal to
d. the opposite of
Suppose that you are attending a sporting event. Give an example of two nondurable goods, two durable goods, and two services you might encounter during this experience.
What will be an ideal response?