Refer to Figure 7.5. The deadweight loss associated with the monopoly would be:
A. $787.5.
B. $612.5.
C. $262.5.
D. There is not sufficient information.
Answer: B
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For most goods and services the income elasticity of demand is
A) negative. B) positive. C) invisible. D) inverse.
Which of the following will possibly cause a leftward shift in the production possibility curve, representing good X and good Y?
a. A decrease in a country's GDP b. An increase in the price of good X c. An increase in the price of good Y d. A decrease in the price of good Y e. A decrease in the price of good X
Opportunity cost is the
a. cost incurred when one fails to take advantage of an opportunity. b. cost incurred in order to increase the availability of attractive opportunities. c. cost of the best option forgone as a result of choosing an alternative. d. drudgery of the undesirable aspects of an option.
The price rationing mechanism of a freely functioning market leads to the most efficient use of resources because
A. all gains from mutually beneficial trade are captured. B. the government regulates the market. C. the Supreme Court determines market activities. D. of the rise of the legislative apparatus that supports trade.