Suppose that your income during Year X was $50,000, and the CPI for Year X was 150 (base year = Z=100). Back in Year Z your income was $30,000. Has your real income (in year z dollars) increased or decreased from Z to year X? By how much?
A. Increased by $5,000.
B. Increased by $3,333.
C. Decreased by $5,000.
D. Decreased by $3,333.
Answer: B
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The individual supply of a monopolist
a. coincides with the market demand curve. b. is below the market supply curve. c. is below the firm’s average revenue curve. d. coincides with the market supply curve.
The purpose of social regulation is
A) to force a firm to produce at the point where marginal cost equals marginal revenue. B) to control the quality of service provided by a monopolist. C) to control the price that regulated enterprises are allowed to charge. D) to focus on the impact of production on the environment and society, the working conditions under which goods and services are produced, and sometimes the physical attributes of goods.
In Figure 6.6 if price is P1, then the industry will:
A. expand. B. contract. C. stay the same size. D. merge.
Use the following graph for a competitive market to answer the question below.
A price floor of $25 per unit will result in a
A. surplus of 250 units. B. shortage of 250 units. C. shortage of 200 units. D. surplus of 200 units.