Refer to the graph shown. The welfare loss of monopoly is:
A. 2,112.5.
B. 1,137.5.
C. 2,762.5.
D. 1,381.25.
Answer: D
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To avoid a rule-of-reason violation, the manager of a designer handbag firm should not undertake which of these actions without first speaking to an attorney?
A) enter into an agreement with a distributor about the minimum price the distributor can resell the handbags B) enter into an agreement with another designer handbag firm to set the price of the handbags C) enter into an agreement with another designer handbag firm not to sell to a particular customer D) enter into an agreement with another designer handbag firm to only sell in certain areas of the world
The figure below shows an IS-LM-FE model for an economy with fixed exchange rates. Initially the economy was at Point A, a triple intersection. Here, the FE curve is flatter than the LM curve.
At Point B, the economy is experiencing
A. a decreasing money supply. B. a high rate of unemployment. C. a surplus in the overall balance of payments. D. an overall balance of payments that is in equilibrium.
Economic costs
A. are equal to total revenue minus accounting profit. B. include both a normal rate of return on investment and the opportunity cost of each factor of production. C. are the opportunity cost of each factor of production minus any interest charges paid on borrowed funds. D. are equal to the direct costs of hiring all factors of production.
We can roughly estimate how long it will take a country to double its real GDP per capita using the:
A. rule of 60. B. rule of 70. C. GDP deflator. D. growth estimator.