What kind of market runs most efficiently when one large firm supplies all of the output?
a) a natural monopoly
b) a network
c) perfect competition
d) imperfect competition
Ans: a) a natural monopoly
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Suppose you bought a concert ticket from Ticketmaster for $50, but when you get to the concert, there are a large number of people waiting outside who offer to pay you more than $50 for your ticket. What is probably true?
A. The Ticketmaster price is the equilibrium price. B. The Ticketmaster price was above the equilibrium price. C. There is an excess demand for tickets at the Ticketmaster price. D. There is an excess supply of tickets at the Ticketmaster price.
If the labor force grows faster than the number employed, the
A. unemployment rate will fall. B. unemployment rate will rise. C. labor force rate will rise. D. employment rate will rise.
Policies to keep inflation in check ________
A) are, typically, fiscal policies B) are a potential cause of high unemployment C) are unlikely to be needed, so long as government spending remains high D) include increasing the quantities of money and saving E) are desirable in the short run, but may produce bad long-run outcomes
What is the difference between the average cost per unit for 5 units and the marginal cost of the 5th unit?
a. 196 b. 86 c. 40 d. 110