If the price in an oligopoly market is the same as that of a monopoly with identical cost and demand conditions, then:
A. the average cost curve must be downward sloping.
B. there may be collusion between firms.
C. market demand must be unit elastic.
D. This could never happen.
Answer: B
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Which of the following statements about employer prejudice is true?
a. It would be impossible for employer prejudice to exist in a firm that sells its output in a competitive market unless all rivals also discriminate. b. Economic theory tells us that it would be impossible for employer prejudice to exist in a firm that is a monopoly. c. Employer prejudice will help a monopolist to increase his profits by satisfying his managers personal prejudices. d. Legislation has ended employer prejudice in the United States. e. Employer prejudice occurs only in low-paying jobs.
When negative externalities are present in a market
a. private costs will be greater than social costs. b. social costs will be greater than private costs. c. only government regulation will solve the problem. d. the market will not be able to reach any equilibrium.
Vertical equity and horizontal equity are associated with
a. the benefits principle of taxation. b. the ability-to-pay principle of taxation. c. taxes that have no deadweight losses. d. falling marginal tax rates.
The political problems associated with fixing the CPI are that
A. benefits to the poor would rise. B. Social Security benefits would fall. C. personal income taxes would fall. D. Social Security taxes would rise.