Which of the following is true of long-run equilibrium price in a monopolistically competitive market?
A) It is equal to average total cost.
B) It is less than average total cost.
C) It is higher than average total cost.
D) It is lower than marginal cost.
A
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If a rise in the price of good X causes the quantity demanded of good X to fall, then
a. the Engel curve for good X is downward sloping. b. the (ordinary) demand curve for good X is downward sloping. c. the demand for good X is elastic. d. good X must be a Giffen good.
When government provides goods and services, they are often produced in which of the following ways and why?
a. inefficiently because the government only produces when the benefits nation-wide outweigh the costs b. efficiently because the government always makes efficient decisions c. efficiently because the government allows special interest groups to determine what is produced d. inefficiently because there is no competition and no potential of going out of business
Karen, Tara, and Chelsea each buy ice cream and paperback novels to enjoy on hot summer days. Ice cream costs $5 per gallon, and paperback novels cost $8 each. Karen has a budget of $80, Tara has a budget of $60, and Chelsea has a budget of $40 to spend on ice cream and paperback novels. Who can afford to purchase 8 gallons of ice cream and 5 paperback novels?
a. Karen, Tara, and Chelsea
b. Karen only
c. Tara and Chelsea but not Karen
d. none of the women
Prior to the housing crisis of 2008, the federal government had been trying to ______ lending standards for low income people to ______ home ownership.
a. raise; decrease b. raise; increase c. lower; decrease d. lower; increase