Question 16(1 point)

If the four-firm concentration ratio for industry X is 80, this means that:

Question 16 options:

	the four largest firms account for 80 percent of total sales
	each of the four largest firms accounts for 20 percent of total sales
	the four largest firms account for 20 percent of total sales
	the industry is monopolistically competitive
	the industry is perfectly competitive

Question 17(1 point)

Producer surplus is:

Question 17 options:

	the sum the business's profit and its variable cost
	the sum of the business's variable cost and fixed cost
	the difference between price and marginal cost for each unit the business produces and sells
	the price received from each unit of an item multiplied by the number of units of the item produced by the business
	the sum of the marginal costs of producing a particular item for all units of the item produced by the business

Question 18(1 point)

Refer to the figure above. The marginal benefit of the 500,000thunit consumedis:

Question 18 options:

	$12
	$6
	$10
	$4
	$8

Question 19(1 point)

A subsidy:

Question 19 options:

	is appropriate when businesses are guilty of polluting
	should be provided when there are spillover benefits
	should be provided only when a public good is being produced
	should be provided when there are spillover costs
	is appropriate for products such as cigarettes and alcohol

Question 20(1 point)

An example of a public good is:

Question 20 options:

	a cellphone
	a fireworks display
	an airplane
	a concert
	milk

Question 21(1 point)

The main reason for agricultural price supports is to:

Question 21 options:

	reduce competition
	provide supplies for foreign aid
	help consumers
	give government control over agriculture
	stabilize prices and farm incomes

Question 22(1 point)

The most important determinant oflabourincomeis:

Question 22 options:

	productivity
	working conditions
	job segregation
	experience
	education