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Which of the following occurs if firms are able to restrict output and raise price

Which of
the following occurs if firms are able to restrict output and raise price?

a resources
are misallocated

b wealth is
shifted from consumers to government

c wealth
is shifted from producers to consumers

d P = MC

 

2 Production
by a monopoly would result in the socially optimal allocation of resources if

a price is
set equal to marginal cost

b marginal
revenue is set equal to price

c marginal
revenue is set equal to marginal cost

d price is
set equal to average total cost

 

3 If firms
accused of antitrust violations sign a consent decree, they have

a admitted
guilt and accept the lawful penalties

b admitted
guilt, but are relieved of any penalties by agreeing to cease the violations

c agreed
to cease the alleged wrongdoing, without admitting guilt

d denied
the accusation and requested a formal hearing or trial

 

4 Generally,
people are more satisfied with private market outcomes than with public voting
outcomes because

a each
consumer in the private market can choose the quantity he or she desires

b most
people are near the median

c the
prices are lower

d markets
are involuntary

 

5 Rationality
implies that in order to get what they want, people will spend the most time
and effort

a making
private market decisions

b getting
politically involved

c investigating
political candidates’ platforms

d debating
social issues

 

6 Special-interest
groups have little incentive to

a earn
profits

b redistribute
wealth

c lobby
Congress

d make the
economy more efficient

 

7 Property
rights can be defined and enforced

a only by
the government

b only
through constant renegotiation

c by
government, by informal social actions, and by ethical norms

d by the
government and by ethical norms

 

8 At the
market output and price for a good whose production causes pollution, (Points:
1)

a pollution
is eliminated

b the
marginal social cost of production exceeds the marginal social benefit of
production

c the
private cost of production equals the private benefit of production

d the
marginal social benefit of production equals the marginal social cost of
production

 

9 When a
citizens’ group opposes expansion of the prison located in town, the basis of
the opposition is that the larger prison will produce

a a
negative externality for the community

b a
positive externality for the community

c more
jobs in the community

d tax
revenue for the community

 

10 If
education creates positive externalities,

a private
markets provide less than the socially optimal quantity of education

b private
markets provide more than the socially optimal quantity of education

c the
marginal private benefit curve is higher than the marginal social benefit curve

d the marginal
private cost curve is higher than the marginal social cost curve

Mar 16 2020 View more View Less

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