A good that has social costs that are less than private costs has a quantity that is
A. too high.
B. equal to zero.
C. just right.
D. too low.
Answer: D
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Sammy's Inc competes with a few other firms because there are natural barriers to entry. Sammy's operates in
A) a perfectly competitive market. B) an oligopoly. C) a monopolistically competitive market. D) a monopoly. E) a natural monopolistically competitive market.
When quantity demanded is greater than quantity supplied,
A. there is a surplus. B. price will fall until it gets back to equilibrium. C. quantity supplied will rise and quantity demanded will fall. D. quantity supplied will fall and quantity demanded will rise.
Once the FOMC announces the result of its meeting the attendees:
A. never discuss the policy issues addressed in the meetings. B. observe a blackout period that lasts for a week following the meeting during which they do not speak publicly about the economic outlook or current monetary policy. C. observe a twenty-four hour blackout period following the meeting during which they do not speak publicly about the economic outlook or current monetary policy. D. it must brief the financial news immediately after and answer questions posed to them.
Assume that in the short run a firm is producing 100 units of output, has average total costs of $100, and average variable costs of $50. The firm's total fixed costs are
A) $50. B) $5,000. C) $150. D) $15,000.