{"id":53131,"date":"2022-04-16T21:01:53","date_gmt":"2022-04-16T21:01:53","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/what-might-create-a-monopoly\/"},"modified":"2022-04-16T21:01:53","modified_gmt":"2022-04-16T21:01:53","slug":"what-might-create-a-monopoly","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/what-might-create-a-monopoly\/","title":{"rendered":"What might create a monopoly"},"content":{"rendered":"
\n

Part 1<\/span><\/p>\n

1. What might create a monopoly? (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>a key resource is owned by a single firm.\u00a0 <\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>the government gives\u00a0 a single firm the exclusive right to produce a good or service.\u00a0 <\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>a single firm can produce output at a lower cost than a larger number of producers. <\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>all of the above<\/span><\/span><\/p>\n

2. Market power is the ability _____. (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>to set prices and quantities sold<\/span><\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>of capitalists to exploit the working classes<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>to set prices<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>all of the above<\/span><\/p>\n

3. Which of the items below are examples of monopolistic competition, also known as imperfect competition? (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>patent, copyright, and trademark<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>professional licensing and labor unions<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>local shops and restaurants<\/span><\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>all of the above<\/span><\/p>\n

e.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>none of the above<\/span><\/p>\n

4. In what kind of market is a firm unable to influence the price of its output? (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>price maker<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>monopoly<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>imperfect monopoly<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>perfectly competitive<\/span><\/span><\/p>\n

5. When the quantity sold of a good changes significantly in response to changes in price, its demand is _____. (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>identical to his supply curve<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>identical to marginal cost<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>highly elastic<\/span><\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>highly inelastic<\/span><\/p>\n

6. When a firm’s marginal revenues are higher than its marginal cost, (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>it is operating below its optimal capacity<\/span><\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>it is operating above its optimal capacity<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>it is operating at its optimal capacity<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>all of the above<\/span><\/p>\n

7. The primary goal of a firm is to _____. (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>minimize cost<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>maximize revenue<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>maximize profit<\/span><\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>all of the above<\/span><\/p>\n

8. Which of the following most nearly approximates a perfectly competitive market? (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>products with brand names that are sold in many different stores<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>commodities, like wheat, rice, and gold<\/span><\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>products that are very close substitutes for each other, like Coke and Pepsi<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>all of the above<\/span><\/p>\n

9. Profit equals _____. (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>total revenue minus total cost<\/span><\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>total revenue minus marginal cost<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>marginal revenue minus marginal cost<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>gross revenue minus depreciation<\/span><\/p>\n

10. Marginal cost is _____. (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>a small cost that does not affect a firm’s profit significantly<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>the cost of increasing the margin between cost and price<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>the cost of producing the next unit of output<\/span><\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>all of the above<\/span><\/p>\n

11. A good that is non-excludable and non-rival in consumption is called a(n): (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>public good<\/span><\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>commodity<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>oligopoly good<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>monopoly good<\/span><\/p>\n

12. The “Prisoner’s Dilemma” illustrates: (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>The lack of cooperation among firms in a competitive market<\/span><\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>The lack of cooperation among firms in a monopolistic market<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>The lack of cooperation between a monopoly and its customers<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>why, in an oligopoly market, cooperation is difficult to achieve even when it is mutually beneficial<\/span><\/p>\n

13. Advertising is a natural feature of\u00a0 _____. (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>monopolistic competition<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>perfect competition<\/span><\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>public good<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>monopoly<\/span><\/p>\n

14. A cartel arrangement is likely to be successful for its members only if it can _____. (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>let members produce at full capacity and sell all of their output to the other cartel members<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>monitor the cartel members and enforce the arrangement<\/span><\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>get the government to pass antitrust legislation<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>do all of the above<\/span><\/p>\n

15. A single firm that can supply a good or service to an entire market at a smaller cost than two or more firms could is called a: (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>Natural monopoly<\/span><\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Competitive monopoly<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Cartel<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Artificial monopoly<\/span><\/p>\n

16. The theory of comparative advantage concludes that _____. (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>each individual should engage in that activity, in which he or she is more effective than anyone else<\/span><\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>each individual should engage in a large number of economic activities, and not ‘put of one’s eggs in one basket’<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>each individual should pursue a career doing what he or she does best<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>each individual should strive to be self-reliant<\/span><\/p>\n

17. Price gouging might be the result of: (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>A sudden increase in demand<\/span><\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>A sudden decrease in demand<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>A sudden increase in supply<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>A surplus<\/span><\/p>\n

18. A negative externality occurs when _____. (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>a person’s action harm others, and that person does not bear the cost that others bear<\/span><\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>a person breaches the social contract<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>a person’s actions create benefits that other persons benefit from, but do not pay for<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>a person ceases activities that are external to the economic processes, in which that person engages<\/span><\/p>\n

19. Transaction costs include _____. (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>fees charged by brokers<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>transportation and communication costs<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>legal, accounting, and regulatory costs<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>all of the above<\/span><\/span><\/p>\n

20. Legal prohibitions against price gouging _____. (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>are necessary for the smooth operation of a market economy<\/span><\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>are price floors that lead to surpluses<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>are price ceilings that lead to shortages<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>prevent price discrimination<\/span><\/p>\n

21. OPEC is an example of _____. (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>cartel<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>oligopoly<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>both of the above<\/span><\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>none of the above<\/span><\/p>\n

22. As you become more educated, you provide your environment with a ________ (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>positive externality<\/span><\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>negative externality<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>consumer surplus<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>producer surplus<\/span><\/p>\n

23. Which good is considered to have an “inelastic” demand? (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Gasoline at a specific gas station in a populated city<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>Cocaine or heroin<\/span><\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Rolex watches<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Toyota vehicles<\/span><\/p>\n

24. Fireworks display, national defense, and fire protection most closely fit the definition of what kinds of goods, from the perspective of economics? (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>scarce goods<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>uncertain goods<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>natural monopoly goods<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>public goods<\/span><\/span><\/p>\n

25. The tragedy of the commons occurs when _____ (Points : 4) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>supply exceeds demand.<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>property rights to a scarce resource are not assigned or not enforced.<\/span><\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>free riders are excluded from consuming a resource.<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>individuals steal from each other.<\/span><\/p>\n

Part 2<\/span><\/p>\n

1. Economics studies _____. (Points : 5) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>How society manages its scarce resources<\/span><\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Social Welfare<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Ethical use of resources<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Protection of workers’ rights<\/span><\/p>\n

2. All other things being equal, a decrease in supply results in a(n)_____. (Points : 5) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>increase in equilibrium price and a decrease in equilibrium quantity<\/span><\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>increase in equilibrium quantity and a decrease in equilibrium price<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>decrease in equilibrium quantity and a decrease in equilibrium price<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>decrease in demand<\/span><\/p>\n

3. In one hour, a person can fix 4 flat tires or type 200 words. The opportunity cost of fixing ONE flat tire is _____. (Points : 5) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>200 words<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>4 flat tires<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>1 word<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>50 words<\/span><\/span><\/p>\n

4. The amount of a good or service that buyers would be willing and able to purchase at a specific price is known as _____. (Points : 5) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>quantity demanded<\/span><\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>demand<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>supply<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>quantity supplied<\/span><\/p>\n

5. Public goods are _____. (Points : 5) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>excludable but not rival in consumption<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>rival in consumption but not excludable<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>excludable and rival in consumption<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>neither excludable nor rival in consumption<\/span><\/span><\/p>\n

6. In a free market economy, government is needed when _____. (Points : 5) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>property right are not assigned to individuals<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>the market fails to allocate resources efficiently<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>a single supplier has a substantial influence on the market price.<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>all of the above apply<\/span><\/span><\/p>\n

7. All other things being equal, an increase in demand results in a(n) ______. (Points : 5) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>increase in equilibrium price and a decrease in equilibrium quantity<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>increase in equilibrium quantity and a decrease in equilibrium price<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>decrease in equilibrium quantity and a decrease in equilibrium price<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>increase in equilibrium price and an increase in equilibrium quantity<\/span><\/span><\/p>\n

8. In a free market, a shortage of a product always leads to: (Points : 5) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>Increases in price<\/span><\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Decreases in price<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>No change in price<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Any of the above<\/span><\/p>\n

9. Price discrimination is most likely practiced by a(n) _____. (Points : 5) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>monopoly<\/span><\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>oligopoly<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>monopolistic firm<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>perfectly competitive firm<\/span><\/p>\n

10. Rival pricing strategies and collisions are typically found in a(n) _____. (Points : 5) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>monopoly<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>oligopoly<\/span><\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>monopolistic competition<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>perfectly competition<\/span><\/p>\n

11. Most products purchased in our daily lives are found in this market: (Points : 5) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>monopoly<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>oligopoly<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>monopolistic competition<\/span><\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>perfect competition<\/span><\/p>\n

12. When the government is involved in regulating the prices sellers are allowed to charge, this often leads to_____. (Points : 5) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>unemployment, inflation, and recession<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>deceptive advertising<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>price gouging<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>the quantity of goods available being less than the equilibrium quantity<\/span><\/span><\/p>\n

13. A price imposed by the government below an equilibrium price is called a ____ . (Points : 5) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>price ceiling<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>price floor<\/span><\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>price carpet<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>price surplus<\/span><\/p>\n

14. A tax on imports is called a: (Points : 5) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>sales tax<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>corporate tax<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>trade tax<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>tariff<\/span><\/span><\/p>\n

15. Profit-maximizing firms produce extra units of output up to the point where: (Points : 5) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>marginal revenue equals marginal cost<\/span><\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>marginal revenue exceeds marginal cost<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>marginal revenue is less than marginal cost<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>any of the above<\/span><\/p>\n

16. In the United States, anti-trust laws might not allow: (Points : 5) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>black markets<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>underground economy<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>mergers of big and dominant companies like Coca-Cola and PepsiCo<\/span><\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>too much competition in a specific market.<\/span><\/p>\n

17. Higher oil prices tend to: (Points : 5) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>increase the prices of many different products<\/span><\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>increase the prices of farm products only<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>increase prices in the airline industry only<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>increase the prices of public transportation only<\/span><\/p>\n

18. When doing research, Economists: (Points : 5) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>follow the scientific method: observation, theory, and more observation<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>cannot use experiments, as they are often done in areas like Physics and Chemistry.<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>have to use whatever data the world happens to give them<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>all of the above.<\/span><\/span><\/p>\n

19. Economic models_____. (Points : 5) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>must completely describe every aspect of the economy in order to be useful<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>are simplified abstract representations of reality<\/span><\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>avoid the use of assumptions wherever possible<\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>are ideals that economics agents aspire to achieve<\/span><\/p>\n

20. A few industry-dominating firms acting as a collective monopoly is known as a: (Points : 5) <\/span><\/p>\n

a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>a trading bloc<\/span><\/p>\n

b.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>a market<\/span><\/p>\n

c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>a cartel<\/span><\/span><\/p>\n

d.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>an industry<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Part 1 1. What might create a monopoly? (Points : 4) a.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 a key resource is owned by a single firm.\u00a0 b.\u00a0\u00a0\u00a0\u00a0\u00a0 the government gives\u00a0 a single firm the exclusive right to produce a good or service.\u00a0 c.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 a single firm can produce output at a lower cost than a larger number of producers. d.\u00a0\u00a0\u00a0\u00a0\u00a0 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-53131","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/53131","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=53131"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/53131\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=53131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=53131"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=53131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}