If there is a sole producer of a good, and he faces no threat of competition, it is likely that:
A. the consumer surplus is greater than in a competitive equilibrium.
B. the price is set below the competitive equilibrium price.
C. the price is set inefficiently high.
D. the market is efficient.
Answer: C
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Applying neoclassical theory to the housing market, a higher marginal product of (housing) capital may be caused by ________
A) higher expected household income B) the inability to buy as much housing at a higher price C) an expected increase in the relative price of housing D) a decrease in the cost of building new houses
Suppose a consumer has an income of $800 per month and that she spends her entire income each month on beer and bratwurst. The price of a pint of beer is $5, and the price of a bratwurst is $4 . Which of the following combinations of beers and bratwursts represents a point that would lie to the exterior of the consumer's budget constraint?
a. 160 beers and 200 bratwursts b. 40 beers and 50 bratwursts c. 80 beers and 100 bratwursts d. 160 beers and 0 bratwursts
If income rises in the market for an inferior good, will the demand curve for the inferior good shift to the right or to the left?
Which of the following is the least efficient method of allocating import licenses by the government?
A. Resource-using application procedures B. A free lottery C. Fixed favoritism D. A competitive auction