Refer to Figure 10.2. At output Qm, and assuming that the monopoly has set her price to maximize profit, the consumer surplus is:
A) CDE.
B) BDEF.
C) ADEG.
D) 0DEQm.
E) none of the above
A
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The World Bank primarily engages in
A) short-term lending aimed at helping developing nations repay debt accumulated in past years. B) short-term lending aimed at helping developing nations repay loans from the International Monetary Fund. C) long-term lending aimed at helping developing nations' governments and businesses make investments that will contribute to economic growth. D) long-term lending aimed at helping developing nations' governments and central banks keep exchange rates from varying.
What would best describe the international capital markets?
A) the market of exchange of bonds B) the market of exchange of stocks C) the market of exchange of real-estate D) the market in which residents of different countries trade assets E) the currency market
Adam Smith's invisible hand principle stresses
a. that benevolence is a powerful motivator that encourages individuals to engage in productive economic activity. b. the tendency of the competitive market process to direct self-interested individuals into activities that enhance the economic welfare of society. c. the potential of government regulation as a means of bringing the self interest of individuals into harmony with the economic welfare of society. d. the tendency of self-interested individuals to pursue activities that benefit themselves but harm the overall economic welfare of society.
A. the resulting distribution of income is likely to be too equal to maintain production incentives. B. income from inherited property is inconsistent with the theory. C. purely competitive conditions characterize most resource markets. D. it
fails to recognize that resource demand is derived from product demand. A. earnings reflect pricing power rather than marginal revenue product. B. small differences in talent get magnified into huge differences in pay. C. entry and exit rarely occur. D. product demand is typically highly elastic.