Which of the following occurs with both perfectly price discriminating and single-price monopolies?
A) The amount of output is inefficient.
B) All consumer surplus goes to the monopoly.
C) Deadweight loss is created.
D) There is a redistribution of consumer surplus to the monopoly.
D
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The OPEC-designed oil price increases caused the cost of producing almost everything in our economy to increase, resulting in
a. demand-pull inflation b. cost-push inflation c. deflation d. depression e. increased leveraged buyouts
The number of persons who could become lawyers or surgeons is potentially quite large, yet these two groups earn fairly high incomes. One of the main reasons why they do is the
a. return on the investment of many years of training. b. evening-out of their low income during schooling. c. rent on their unique and rare talents. d. scarcity value of their abilities.
Which of the following would decrease the unemployment rate?
A) an increase in the minimum wage B) an increase in the efficiency wage C) an increase in labor union membership D) government aid to retrain unemployed workers
Refer to the information provided in Figure 28.7 below to answer the question(s) that follow.
Figure 28.7Refer to Figure 28.7. Suppose the economy is at Point A and the cost of inputs is fixed. A decrease in government spending could move the economy to Point
A. E. B. B. C. C. D. D.