Missed Econ

When the government requires specific processes for reducing pollution, it is using A) A command-and-control approach B) Green taxes C) A tradable permit program D) A user fee plan

A command-and-control approach

Excise Tax

A tax that is placed on the quantity of the item purchased, such as gallons of it

For perfectly competitive firms, price A) Is equal to marginal revenue. B) And marginal revenue are not related. C) Is greater than marginal revenue. D) Is less than marginal revenue.

A) Is equal to marginal revenue.

If a monopolistic competitor is maximizing profit, it is producing at a point where marginal cost A) Is less than price B) Equals price C) Is greater than price D) Equals average total cost

A) Is less than price

Shut down point is when __ is an its min

AVC

The major aim of government regulation is to A) Control the structure of an industry B) Alter industry behavior C) Prevent monopolies from forming D) Restrict competition

B) Alter industry behavior

When quotas are eliminated, losers include A) There are no losers when free international trade is established B) Domestic producers C) Foreign producers D) Domestic consumers

B) Domestic producers

Which of the following is a merit good? A) Cigarettes B) Food C) Local telephone service D) A computer operating system

B) Food

Suppose Russia can produce either 600 pianos or 400 HDTVs, and Italy can produce either 300 pianos or 150 HDTVs. Implicitly, Russia has A) Both an absolute and a comparative advantage in HDTVs B) A comparative but not necessarily an absolute advantage in HDTVs C) An absolute but not necessarily a comparative advantage in HDTVs D) Neither a comparative nor an absolute advantage in HDTVs

C) An absolute but not necessarily a comparative advantage in HDTVs

Technical efficiency is achieved when a firm produces A) Below the opportunity cost for the resources it uses. B) Enough output to cover the opportunity cost of resources. C) At an amount indicated by a point on the production function. D) An amount less than or equal to the production function.

C) At an amount indicated by a point on the production function

For an oligopoly, a few firms cannot dominate in the long run unless A) A cartel is formed B) A firm has a high concentration ratio C) Barriers to entry exist D) The market is contestable

C) Barriers to entry exist

Suppose China can produce 200 TVs or 200 DVD players. South Korea can produce either 100 TVs or 200 DVD players. In terms of TV production we can conclude that A) China has a comparative advantage in DVD production B) South Korea has an absolute advantage in TV production C) China has a comparative advantage in TV production D) South Korea has a comparative advantage in TV production

C) China has a comparative advantage in TV production

The total revenue effect of a movement along a demand curve can best be predicted using the A) Utility-maximizing rule B) Law of diminishing marginal utility C) Price elasticity of demand D) Law of demand

C) Price elasticity of demand

A natural monopoly occurs because of A) Legal restrictions preventing entry into the industry B) Low fixed costs C) The existence of economies of scale D) High marginal costs

C) The existence of economies of scale

The Clean Air Acts of 1970 and 1990 reduced pollution through A) Market incentives B) Command-and-control regulatory standards C) Privatization D) Emission charges

Command-and-control regulatory standards

If an oligopoly market is contestable and new firms enter, the A) Market power of the former oligopolists will be reduced B) Number of firms in the industry will decrease C) Former oligopolists will raise their prices D) Profitability of the industry will increase

Market power of the former oligopolists will be reduced

opportunity cost is a ratio of

what you are getting/Thing you are giving up