If the government regulates a monopoly's price below the socially efficient level, then:
A. deadweight loss decreases and there is a surplus of output.
B. deadweight loss increases and there is a surplus output.
C. deadweight loss increases and there is a shortage of output.
D. deadweight loss decreases and there is a shortage of output.
Answer: C
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A growth process whereby relatively poorer nations increase their income by taking advantage of knowledge and technologies already invented in other, technologically more advanced countries is referred to as:
A) trade-based growth. B) transfer growth. C) innovative growth. D) catch-up growth.
________ should be considered when conducting a cost-benefit analysis
A) Total costs and total benefits B) Only marginal costs and marginal benefits C) Only implicit costs and implicit benefits D) All costs and all benefits
A world-renowned brain surgeon can type twice as fast as her secretarial assistant. Which of the following statements is true in this situation?
a. The secretary has an absolute advantage in typing. b. The surgeon should do her own typing to save money. c. The surgeon should fire the assistant and work weekends and evenings to stay up on her typing. d. The surgeon should spend her time doing brain surgery and allow her secretary to do the typing because the secretary has a comparative advantage in typing. e. The surgeon should spend her time doing brain surgery and allow her secretary to do the typing because the surgeon has a comparative advantage in typing.
Graphically, a market demand curve is found by
A) taking the average of all prices that people are willing to pay. B) summing the quantities demanded by all individuals at each price. C) summing the prices each consumer would pay for each quantity. D) taking the average of the individual demand curves.