An area of economics that explores how contract or transaction structures can overcome asymmetric information problems is
A. behavioral economics.
B. econometrics.
C. adverse selection.
D. mechanism design.
Answer: D
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The total revenue curve of a monopolist is at its maximum point when:
A) marginal cost is zero. B) marginal cost is positive. C) marginal revenue is zero. D) marginal revenue is positive.
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
An increase in the demand curve for orange juice would be illustrated as a
A) leftward shift of the demand curve. B) rightward shift of the demand curve. C) movement up along the demand curve. D) movement down along the demand curve.
Monopolization of both the labor market and the output market results in
A) higher wages than when both are competitive. B) a higher output price than when both are competitive. C) a lower level of output than when both are competitive. D) All of the above.