Question 1(Multiple Choice Worth 1 points)

(04.03 MC)

A monopoly firm produces men's collared dress shirts. Its brand is strong and differentiated. The company uses price discrimination to increase its economic profits. Which of the following is correct?

The firm is giving greater benefits to its buyers.

The firm produces the same quantity at a higher variable cost.

Buyers are forced to buy at a higher price because the shirts are scarce.

Those with less elastic demand pay a higher price for the shirts.

A greater quantity than the allocatively efficient quantity is sold, at a price higher than the market price.

Question 6(Multiple Choice Worth 1 points)

(02.05 MC)

The percentage change of any determinant of supply or demand along with the percentage change in quantity can be used to measure a good's

total utility

price elasticity

optimal price point

marginal utility

net benefit

Question 9(Multiple Choice Worth 1 points)

(02.03 MC)

A product is experiencing unit elastic price demand. If it increases its price by 5 percent, what must happen to its quantity demanded?

It must decrease by 5 percent.

It must increase by 5 percent.

It must increase by 5 units.

It must increase by one unit.

It must decrease by one unit.

Question 14(Multiple Choice Worth 1 points)

(06.01 MC)

Which of the following market situations has a long-run equilibrium that is allocatively efficient?

Oligopoly with no externalities

Monopoly with perfect information

Perfect competition with externalities

Perfect competition with no externalities

Perfect competition with asymmetric information

Question 16(Multiple Choice Worth 1 points)

(06.05 MC)

Country A has a Gini coefficient of 0.70, whereas Country B has a Gini coefficient of 0.75. What must be true about these two countries?

Country A has lower economic inequality than Country B.

Country B has lower economic inequality than Country A.

Country A has a lower income per capita than Country B.

Country B has a lower income per capita than Country A.

Country A has a lower standard of living than Country B.