1. Monopolistic competitors can make a __________ in the short-run, but in the long run, ___________ will drive these firms toward ____________.
A: profit or loss; entry and exit; a zero-profit outcome
2. Splitting up a natural monopoly held by a public utility that produces and provides electricity would
A: raise the average cost of production and force consumers to pay more.
3. Raven Farms raises a substantial number of bees and uses the honey to produce its own skin healing cream. Raven Farms is situated next to the Oakcreek Apple Orchard. The bees from Raven Farms pollinate Oakcreek’s apple trees. In this instance, Raven Farms
A: provides more social benefits than it derives in private benefits.
4. If the quality differences of similar products are mostly imperceptible to the average consumer’s eyes, which of the following will most likely play a major role in influencing the decisions of purchasers?
A: price of competing products
5. In the event that Only1Corp. obtains control of all the natural gas producers in the US, it would most likely
A: raise prices, cut production, and realize positive economic profits.
6. The unemployment rate may underestimate the true extent of unemployment if:
A: many part-time employees would like to work fulltime, but are unable to get the additional work.
7. If the price index moves from 107 to 110, the rate of inflation is:
A: 2.8%
8. When Anders took out his first two-year membership with Maxima Gym in 2004, the fee was $540.00. He renewed his membership three times; in 2006 for $580.00, in 2008, for $600.00, and again in 2010, for $630.00. What is the overall rate of inflation for Anders’ gym membership?
A: 16.66%
9. In a scenario of hyperinflation, such as Zimbabwe’s experience in the 2000s, holding onto a nation’s currency becomes increasingly undesirable for consumers due to its rapidly diminishing value.
A: True
10. In order to avoid double counting, statisticians just count the __________________.
A: final goods and services