Assume someone organizes all farms in the nation into a monopoly. Which of the following occurs? i. Consumer surplus decreases. ii. Economic profit increases. iii. A deadweight loss is created
A) i only
B) ii only
C) iii only
D) i and ii
E) i, ii, and iii
E
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Scott and Tom have dinner together at a new restaurant, and they discover that the portions are huge but taking home leftovers is not allowed. When both decide they are full, Scott forces himself to finish the rest of the food on his plate even though he doesn't really want to, while Tom asks the waiter to remove his plate while it still contains some food. How would an economist describe this behavior?
A. Scott acted rationally, because the food otherwise would have been thrown away. B. Tom acted rationally, maximizing his utility. C. Both Tom and Scott acted rationally. D. Both Tom and Scott acted irrationally.
Suppose workers agreed to an indexed contract that increased their nominal wage by 4 percent plus 25 percent of any increase in the Consumer Price Index (CPI). If the CPI increased by 8 percent, what would be the change in the real wage?
a. 4 percent b. -2 percent c. 0 percent d. -4 percent e. 2 percent
More economists adopted monetarism in the early 1990s
a. True b. False Indicate whether the statement is true or false
If equilibrium is present in a market,
a. quantity demanded exceeds quantity supplied. b. quantity demanded equals quantity supplied. c. quantity supplied exceeds quantity demanded. d. the price of the product will tend to rise.