A political function of government is to
A. encourage the workings of the price system.
B. provide public goods.
C. encourage the consumption of government-sponsored goods.
D. correct for externalities.
Answer: C
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A monopolist will operate where
a. MR = MC and charge a price equal to marginal revenue. b. MR = MC and charge a price equal to marginal cost. c. MR = MC and charge a price corresponding to demand at that level. d. MC = MR and charge a price corresponding to average cost.
Which of the following affects both the marginal and average total cost curves of a firm in the short run?
A. A change in consumer income. B. A change in property taxes. C. A change in profit taxes. D. A change in payroll taxes.
Since 1970, the United States experienced stagflation
A. during all five recessionary periods. B. during none of the five recessionary periods. C. only during the most recent recessionary period. D. only during the first two recessionary periods.
Refer to the graph shown. With an effective price ceiling at $3, the quantity supplied:
A. falls from 40 to 20. B. increases from 20 to 40. C. increases from 40 to 70. D. falls from 70 to 40.