Which of the following is the result whenever the government intervenes in an efficient market and creates deadweight loss?

Productive inefficiency

Allocative inefficiency

Shortages

Unemployment

Tax revenue

In the cell phone market, what demand curve shift would occur if the price of cellular service decreased?

The demand for cell phones would shift to the left.

The demand for cell phones would shift to the right.

The demand for cell phones and the quantity demanded would remain constant.

The quantity demanded of cell phones would increase, but the demand curve would not shift.

The quantity demanded of cell phones would decrease, but the demand curve would not shift.

Doctors often complain that the patents of pharmaceutical companies make newer medicines hard to obtain and overpriced for their patients. This describes how the patents cause the new medicines to be

artificially scarce

common pool goods

non-excludable

perfectly competitive

rival goods

Which of the following is a basic question that must be answered in resource allocation?

How much education should workers have?

What goods and services should be produced?

What is a fair price for a particular good or service?

How much should a good or service cost the consumer?

What sort of technology should be used to produce goods?

Which of the following is correct about a monopsonistic factor market?

Resources are efficiently allocated.

There is one seller and many buyers.

The monopsony has the same quantity transacted as in a perfectly competitive input market.

The demand curve is downward sloping and above the marginal cost curve.

The marginal benefit to suppliers will be less than the marginal cost to the buyer.

Assuming a market with monopolistic competition, in which situation would a firm generate positive economic profit in the short run?

The price exceeds the average total cost.

The price is equal to the average total cost.

The marginal revenue is equal to the marginal cost.

The price is less than the average total cost.

The marginal revenue exceeds the marginal cost.