Figure 5-19
In Figure 5-19, the consumer experiences at point C
a.
greater total utility than at point D.
b.
greater total utility than at point E.
c.
less total utility than at point D.
d.
total utility equal to that experienced at point D.
c
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If net exports are positive,
A) capital inflows must be greater than capital outflows. B) net foreign investment is negative. C) net foreign investment is also positive. D) Both A and B are correct.
In a competitive market the current price is $5 . The typical firm in the market has ATC = $5.00 and AVC = $4.50
a. In the short run firms will shut down, and in the long run firms will leave the market. b. In the short run firms will continue to operate, but in the long run firms will leave the market. c. New firms will likely enter this market to capture any remaining economic profits. d. The firm will earn zero profits in both the short run and long run.
If resources are owned by individuals instead of government,
a. resources will be used less efficiently. b. resource use will tend to be unchanging and determined by historical usage patterns. c. resource use will be guided by changing relative prices as owners attempt to maximize self-interest. d. market prices will not reflect changing values of different uses of the resources. e. none of the above answers are correct.
A monopolist who has a horizontal ATC schedule and charges the same monopoly price to all buyers
A. does not lower the amount of consumer surplus that buyers have compared with what they would have if instead they faced a perfectly competitive firm. B. appropriates more consumer surplus as profit than a perfect price discriminator does. C. appropriates less consumer surplus as profit than a perfect price discriminator does. D. appropriates less consumer surplus as profit than a perfectly competitive firm does.