25.The question below (25) is based on the following demand schedule for a monopolist:

_________________________________________________

P ($) Q (units) TR ($) MR ($)

(1) (2) (3) = (1)(2) (4)

________________________________________________

160 1

150 2

140 3

130 4

120 5

_________________________________________________

Where: P is Price; Q is Quantity; TR is Total Revenue; MR is Marginal Revenue.

The marginal revenue associated with the sale of the second unit is:

Group of answer choices

a. $100.

b. $110

c. $120.

d. $130.

e. $140.

Flag question: Question 26Question 2610 pts

26.A firm given exclusive rights by the government to do business in a particular are is

Group of answer choices

a. A patent monopoly.

b. An output monopoly.

c. A natural monopoly.

d. An input monopoly.

e. A franchise monopoly.

Flag question: Question 27Question 2710 pts

27.The question below (27) is based on the following demand schedule for a monopolist:

______________________________________________________________

P ($) Q (units) TR ($) MR ($)

(1) (2) (3) = (1)(2) (4)

______________________________________________________________

160 1

150 2

140 3

130 4

120 5

______________________________________________________________

Where: P is Price; Q is Quantity; TR is Total Revenue; MR is Marginal Revenue.

The marginal revenue associated with the sale of the third unit is:

Group of answer choices

a. $100.

b. $110.

c. $120.

d. $130.

e. $140.

Flag question: Question 28Question 2810 pts

28.If price elasticity of demand is 2.17, the demand for the commodity is

Group of answer choices

a. Of unitary elasticity.

b. Price inelastic.

c. Price preelastic.

d. Price elastic.

e. Price postelastic.

Flag question: Question 29Question 2910 pts

29.A monopolist seeking to maximize total profits will

Group of answer choices

a. Minimize cost per unit.

b. Maximize profit per unit.

c. Set price equal to average total cost.

d. Charge the highest possible price.

e. Set marginal revenue equal to marginal cost.

Flag question: Question 30

30.The price elasticity of demand will increase with the length of the period to which the

demand curve pertains because

Group of answer choices

a. Consumers' income will increase.

b. Advertising will have more time to take effect.

c. The demand curve will shift outward.

d. Consumers will be better able to find substitutes.

e. The arc elasticity of demand will decline.

Flag question: Question 31Question 3110 pts

31.A key characteristic of oligopoly is

Group of answer choices

a. A single firm producing a product with no close substitutes.

b. Actual and perceived interdependence among firms.

c. Complete absence of entry barriers.

d. A demand curve much less elastic for price increases than for price decreases.

e. The tendency to spend less on product differentiation and advertising than a perfectly competitive firm.

Flag question: Question 32Question 3210 pts

32.The market demand curve for labor

Group of answer choices

a. shows, for each price, the quantity of labor demanded in the entire market.

b. derives employment totals from the amounts supplied.

c. may slope upward due to external diseconomies.

d. will be horizontal if the market is perfectly competitive.

e. relates the quantity of labor demanded to the product price.

Flag question: Question 33Question 3310 pts

33.After some point, increased real wage rates that make people richer cause the supply curve of labor to

Group of answer choices

a. Bend backward.

b. Become horizontal.

c. Shift to the right.

d. Shift to the left.

e. Fluctuate unpredictably.

Flag question: Question 34Question 3410 pts

34.The question below (34) is based on the following information for a firm under

conditions of perfect competition:

____________________________________________________________________________

Number of workers MP of L Product's Price the value of MP of L

(1) (2) (3) (4) = (2) (3)

____________________________________________________________________________

14 16

13 14

12 10

11 9

10 8

_____________________________________________________________________________

If the price of the product is $10 per unit and the firm must pay $140 per worker employed,

how many workers should the firm hire to maximize profits?

Group of answer choices

a. 14.

b. 13.

c. 12.

d. 11.

e. 10.

Flag question: Question 35Question 3510 pts

35.The equilibrium rate of interest is

Group of answer choices

a. Equivalent to the profit rate.

b. Fixed by law in the United States.

c. Equal to the value of a bond or a stock.

d. Determined by the demand and supply of loanable funds.

e. The rate that ensures that households and businesses can borrow all the need.

Flag question: Question 36Question 3610 pts

36.The question below (#36) is based on the following cost and revenue schedule for the

Presto Piano Company:

________________________________________________________________________

Output Total Revenue ($) Total Cost ($)

________________________________________________________________________

1 1,000 1,000

2 2,000 1,700

3 3,000 2,500

4 4,000 3,500

5 5,000 4,700

6 6,000 6,500

________________________________________________________________________

To maximize profits, the firm should produce between:

Group of answer choices

a. 1 and 2 units per period.

b. 2 and 3 units per period.

c. 3 and 4 units per period.

d. 4 and 5 units per period.

e. 5 and 6 units per period.

Flag question: Question 37Question 3710 pts

37.A sales tax is generally considered to be regressive because

Group of answer choices

a. Sales tax rise as the price of the item rises.

b. Only necessities are subject to the sales tax.

c. The poor spend a greater percentage of their income on taxable items than the rich.

d. Poor people pay a larger absolute amount of sales tax than the rich.

e. Poor people do not benefit from the services provided by sales tax revenues.

Flag question: Question 38Question 3810 pts

38.The negative income tax is a:

Group of answer choices

a. Principle that argues that most income taxes reduce incentive to produce in a market system.

b. Proposal to allow the automatic setting of income tax rates to negate the effects of a business cycle.

c. Form of unequal taxation that disproportionately hurt low-income families.

d. Tax on unearned income primarily designed to affect high-income families.

e. System whereby families below a certain break-even level receive a government income tax payment.