Assume that Joe is willing to produce a hamburger for $1, and Mary is willing to pay $3 for a hamburger. Which of the following is true?
A. Joe and Mary will only trade if the equilibrium price is less than $1.
B. Joe and Mary will not trade in equilibrium.
C. Joe and Mary can make a mutually beneficial exchange.
D. Joe and Mary cannot make a mutually beneficial exchange.
Answer: C
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The following table depicts the cost and demand structure a natural monopoly faces. Provided that the firm operates as a monopolist, what is the price charged and quantity produced in order to maximize profits?
A) price charged of $900 and quantity produced of 1 B) price charged of $800 and quantity produced of 2 C) price charged of $700 and quantity produced of 3 D) price charged of $600 and quantity produced of 4
When growth goes down, unemployment tends to go:
A. up shortly after, and vice versa. B. down shortly after, and vice versa. C. down at the same time, and vice versa. D. up at the same time, but remains sticky on the way down and lags behind.
One opportunity cost associated with going to college is
A) purchasing text books. B) paying tuition. C) giving up employment possibilities while in college. D) paying for room, board, and other living expenses.
One reason there is political opposition to international trade is that:
A. the potential gains from specialization and trade are small. B. not everyone benefits from trade. C. trade does not increase the total value of goods and services produced by a nation. D. the differences in opportunity costs between countries are small.