In the natural monopoly case, the regulated price will be where
A. MC equals MR.
B. MC crosses D.
C. ATC crosses demand.
D. MR is zero.
Answer: C
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As a unit of account, money is used to
A) state prices of all goods and services. B) pay off future debts. C) hold purchasing power over time. D) exchange for goods and services.
Which one of the following is a major difference between market and collective action through government?
a. Individuals are motivated by personal interests when making market choices, but they will be motivated primarily by the public interest when making collective choices. b. Competitive behavior is present when decisions are made in the marketplace, but competition is absent when choices are made collectively. c. Scarcity constrains output when decisions are made in the market sector, but scarcity is absent when goods are provided by the government. d. In the market sector, there is generally a one-to-one link between payment and consumption; this link is often absent in the government sector.
According to the simple quantity theory of money, which of the following variables are considered either constant or relatively stable?
A. P and Ms B. P and Y C. Y and Ms D. V and Y
Refer to the information provided in Figure 4.3 below to answer the question(s) that follow.
Figure 4.3Refer to Figure 4.3. Retailers will have an excess supply of pencils if the government will not allow retailers to charge less than ________ for a pencil.
A. $0.50 B. $0.45 C. $0.40 D. the equilibrium price