Refer to the graph shown. The welfare cost of monopoly is given by:
A. area A.
B. area B.
C. areas A and B.
D. areas C and D.
Answer: C
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Refer to the figure above. Calculate the revenue earned by the government when it imposes a tariff of $1 on chairs
A) $10 B) $20 C) $30 D) $40
Total utility
A) is equal to the sum of the marginal utilities of all units consumed. B) cannot decrease as a person consumes more and more of a good. C) has a constant rate of increase as a person consumes more and more of a good. D) is negative when marginal utility is declining.
Suppose the demand for X is given by Qxd = 100 - 2PX + 4PY + 10M + 2A, where PX represents the price of good X, PY is the price of good Y, M is income and A is the amount of advertising on good X. If advertising on good X increases by $10,000, then the demand for X will
A. decrease by $20,000. B. decrease by $100,000. C. increase by $20,000. D. increase by $100,000.
Refer to the information provided in Figure 33.2 below to answer the question(s) that follow.
Figure 33.2Refer to Figure 33.2. the theory of comparative advantage suggests that
A. England should export trucks and import cars. B. the United States should import cars and export trucks. C. England should export both trucks and cars. D. the United States should export both trucks and cars.