The purpose of social regulation is
A. to control the price that regulated enterprises are allowed to charge.
B. to force a firm to produce at the point where marginal cost equals marginal revenue.
C. to control the quality of service provided by a monopolist.
D. to focus on the impact of production on the environment and society, the working conditions under which goods and services are produced, and sometimes the physical attributes of goods.
Answer: D
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Assume that both the goods and the labor market are perfectly competitive. If at equilibrium, the marginal cost faced by a firm is $3 and the market wage rate is $6, the marginal product of the last unit of labor hired by the firm must be:
A) 0.5 units. B) 2 units. C) 9 units. D) 18 units.
Comparing checks and currency, we can say:
A. only checks are both money and legal tender. B. both are money and legal tender. C. a check isn't money but currency is. D. both are money but only currency is legal tender.
If there is allocative efficiency in a purely competitive market for a product, the minimum price producers are willing to accept is:
A. greater than marginal cost. B. less than marginal benefit. C. equal to the maximum price consumers are willing to pay. D. equal to the amount of efficiency or deadweight losses.
Suppose the income elasticity of demand for toys is +2.00. This means that:
A. a 10 percent increase in income will increase the purchase of toys by 20 percent. B. a 10 percent increase in income will increase the purchase of toys by 2 percent. C. a 10 percent increase in income will decrease the purchase of toys by 2 percent. D. toys are an inferior good.