question
Which of the following is NOT true?
answer
The single-price monopolist has a marginal revenue curve above the demand curve because it cannot sell additional output without lowering price on previous output
question
What is NOT TRUE about financial intermediaries?
answer
They reduce the GAINS from trade
question
Suppose the numerical calculation for the coefficient of elasticity is +1.7, this means:
answer
Supply is elastic
question
Suppose the inflation rate in the USA is 6% and in Britain it is also 6%. On day two, the inflation rate in Britain decreases to 3% while it remains 6% in the USA. Before the exchange rate adjusts, what will occur?
answer
A surplus of dollars in Britain relative to Pounds
question
At what quantity would the firm maximize profits?
answer
This is a trick question: none of the above is correct
question
Which of the following is NOT TRUE concerning cartels in a free market?
answer
Cartel members in the cartel have an incentive to restrict output to raise price
question
Suppose workers in Sri Lanka earn 12 cents an hour on average while workers in the USA earn $15 per hour on average. What is the economic reason for this situation?
answer
None of the above is correct
question
Which of the following is NOT TRUE with respect to relative price?
answer
The price of the good affects human values relative to scarcity for the good
question
Suppose the bank pays savers 3.5% and charges borrowers 7% who all pay their loans on time and in full. Assume that there is 1.5% administration expenses associated with operating the bank. If the quantity of loanable funds is $2 million, what are the bank's total profits?
answer
$40,000
question
Which economist formulated the "contestability hypothesis"?
answer
William Baumol
question
Which of the following is NOT TRUE?
answer
The law of diminishing returns is a variable determining where the labor supple curve is located
question
The "Law of Supply" states:
answer
None of the above defines the Law of Supply
question
According to David Ricardo's Law of Comparative Advantage, which of the following is TRUE?
answer
Profitable investments into future productivity can shift someone's comparative advantage
question
Which of the following is TRUE with respect to Standard Oil Company?
answer
None of the above is true
question
Suppose there are three industries in a perfectly competitive economy (X), (Y), and (Z). You notice that marginal firms in X and Z are exiting their respective industries and entering industry Y. If all the factors of production used in X, Y, and Z are specialized economic goods, we can infer which of the following?
answer
The prices of consumer goods in Y have risen relative to those in X and Z
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