Refer to the graph shown of a monopolistically competitive firm. You can conclude that:
A. existing firms will exit the industry in the long run.
B. new firms will enter the industry in the long run.
C. the price of dresses is equal to the minimum possible average total cost.
D. the industry is in long-run equilibrium.
Answer: D
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The circular flow model with government included would show that government
A. produces goods and services and sells them in the product market to generate net taxes. B. obtains revenues in the product market and uses it to cover costs in the resource market. C. controls economic resources and sells them in the resource market. D. provides goods and services to businesses and households and pays for them with net taxes.
An example of price discrimination is charging more for steak than for a hamburger.
a. true b. false
The problem of "free riders" arises in a society when goods
A) can't be provided exclusively to the people who pay for them. B) cease to be scarce. C) produced by government are provided to everyone. D) supplied by the private sector are paid for from tax revenue. E) wanted by everyone are priced too low.
If a security held by a bank falls in market value, that loss
A) must be recorded by the bank, no matter what. B) will be recorded by the bank only if the security is of the type they hold to maturity. C) will be recorded by the bank only if the security is of the type they often sell before maturity. D) will be recorded by the bank only if it sells the security.