The vertical distance between the horizontal axis and any point on a perfect competitor's demand curve measures
A) total cost.
B) total revenues.
C) product price, marginal revenue, and average revenue.
D) supply curve for the product.
C
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Measures of poverty (for example, the poverty line) and the distribution of income (for example, the Lorenz curve and the Gini coefficient) are misleading for which of the following two reasons?
A) First, these measures fail to include the income U.S. citizens earn working for foreign firms that have operations located in the United States. Second, these measures fail to include income foreign citizens earn working for U.S. firms that have operations in foreign countries. B) First, these measures do not take into account income mobility over time. Second, these measures ignore the effects of government programs meant to reduce poverty. C) First, none of these measures are adjusted for inflation. Second, they do not measure income on a per capita basis. D) First, these measures fail to include dividend and interest income earned on stocks and bonds. Second, these measures fail to include the value of goods and services citizens make for their own consumption that are not sold in markets.
An isocost line represents:
A) all the combinations of inputs to a production process that result in the same total costs of production. B) all the combinations of inputs that result in the same amount of output. C) all of the combinations of two inputs for which the amount of money spent on each of the inputs is equal. D) all of the levels of output that result in the same total cost.
What is defined as the ability of a firm to earn high profits by raising and keeping the prices of its products substantially above the levels at which those products would be priced in competitive markets?
A. Economies of scope B. Tacit collusion C. Monopoly power D. Perfect competition
Which of the following is an advantage of earmarked taxes?
a. They are flexible. b. They never lead to overproduction. c. They make it more difficult for politicians to alter the expenditure mix away from their preferences. d. They make it easier for politicians to alter the expenditure mix to achieve economic efficiency.