Which of the following is not a market failure?
A. A lack of competition in some markets.
B. Prices determined in competitive markets, which consumers, as individuals, have no control over.
C. The presence of externalities in some markets.
D. A lack of public goods desired by a majority of citizens.
Answer: B
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Which of the following factors will not cause the labor demand curve to shift?
A) the wage rate B) changes in technology C) a change in the price of the product produced with labor D) increases in human capital
In his Liquidity Preference Framework, Keynes assumed that money has a zero rate of return; thus
A) when interest rates rise, the expected return on money falls relative to the expected return on bonds, causing the demand for money to fall. B) when interest rates rise, the expected return on money falls relative to the expected return on bonds, causing the demand for money to rise. C) when interest rates fall, the expected return on money falls relative to the expected return on bonds, causing the demand for money to fall. D) when interest rates fall, the expected return on money falls relative to the expected return on bonds, causing the demand for money to rise.
For which of the following purchases would the absolute price elasticity of demand be smallest?
A) a sports car B) utilities C) chewing gum D) a cell phone
Total revenue is:
A. the amount that an individual gets paid over a specified period of time, typically annually. B. the quantity sold multiplied by the price paid for each unit. C. the amount that a firm spends on all inputs that go into producing a good or service. D. the quantity produced multiplied by the cost of producing each unit.