In monopolistic competition there:
A. is only one buyer.
B. are only a few sellers.
C. are many sellers.
D. is only one seller.
Answer: C
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The imposition of all taxes, except a Pigouvian tax, leads to ________
A) an increase in consumer surplus B) an increase in producer surplus C) a fall in the price of the good D) a loss in total welfare
If a 10 percent cut in the price of video rentals at "That's Rentertainment" causes a 15 percent increase in the quantity of rentals demanded, then
a. total revenue will decrease b. demand is price inelastic within that price range c. demand is price elastic within that range d. demand is unit elastic within that range e. total revenue will remain the same
As with many public goods, determining the appropriate level of government support for the production of general knowledge is difficult because
a. patents correct for an unknown portion of the externality. b. benefits are hard to measure. c. members of Congress are often experts in the sciences. d. the costs always exceed the benefits.
An improvement in technology would cause the long-run aggregate-supply curve to shift
a) left. b) downward. c) right. d) not at all but instead to remain constant.