Compare the outcome in a market with a single-price monopoly to that in a perfectly competitive market
What will be an ideal response?
The monopoly charges a higher price and produces less output than in a perfectly competitive market. The monopoly creates a deadweight loss by producing less than the efficient quantity of output, whereas a perfectly competitive market produces the efficient quantity of output and so has no deadweight loss. The monopoly decreases consumer surplus and increases producer surplus from what they would be if the market is perfectly competitive.
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A rightward shift in the intertemporal budget line would be caused by ________
A) an increase in future income and wealth B) an increase in future income and a decrease in wealth C) a decrease in future income and an increase in wealth D) a decrease in future income and wealth
An example of rent seeking is
a. lobbying by industrial groups. b. lawsuits between rival firms. c. battles over exclusive licenses. d. All of the above are correct.
Who is a price taker in a competitive market?
a. buyers only b. sellers only c. both buyers and sellers d. neither buyers nor sellers
An example of expansionary fiscal policy is
A) increasing government expenditures. B) increasing taxes. C) decreasing government expenditures. D) decreasing taxes. E) a and d