Refer to the information provided in Figure 5.7 below to answer the question(s) that follow.
Figure 5.7The above figure represents the market for pumpkins both before and after the imposition of an excise tax, which is represented by the shift of the supply curve.Refer to Figure 5.7. Before the tax, store owners are willing to sell ________ pumpkins at a price of ________ each.
A. 0; $8.50
B. 1,200; $5.50
C. 700; $7.25
D. 1,200; $8.50
Answer: B
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For the unregulated, single-price monopoly shown in the figure above, when its profit is maximized, output will be
A) 4 units per year and the price will be $6. B) 4 units per year and the price will be $4. C) 6 units per year and the price will be $4. D) None of the above answers is correct.
Jones lost his job in industry A, but he has skills that can be transferred to industry B (which is currently hiring). Smith lost a job in industry C, but his skills cannot be transferred to industry B or to any other industry. Jones is __________ unemployed and Smith is __________ unemployed
A) structurally; frictionally B) structurally; structurally C) frictionally; frictionally D) frictionally; structurally
You could borrow $1,000 today from Bank A and repay the loan, with interest, by paying Bank A $1,060 one year from today. Or, you could borrow $1,500 today from Bank B and repay the loan, with interest, by paying Bank B $1,600 one year from today. Which of the following statements is correct?
a. The interest rate on the loan from Bank A is higher than the interest rate on the loan from Bank B. b. The interest rate on the loan from Bank A is lower than the interest rate on the loan from Bank B. c. The interest rates on the two loans are the same. d. There is not enough information to determine which loan has the higher interest rate.
Which statement is true about monopolies?
A. They face the demand curve of the entire industry and provide the entire industry supply. B. They do not face the demand curve of the entire industry. C. They do not provide the entire industry supply. D. None of these statements are true about monopolies.