Fema Employment
Microeconomics-Help(give you a huge point)
1.The following are four differences between monopoly and perfect competition. Which of these is INCORRECT? a. a monopolist has market power while a perfect competitor does not b. unlike a perfectly competitive firm, a monopoly can make positive economic profits in the long run. c. a monopoly will charge a higher price and produce a smaller quantity than a competitive market with the same demand and cost structure. d. monopoly profits can continue to exist in the long run, because the monopoly produces more and charges a higher price than a comparable perfectly competitive industry. 2. One government policy for dealing with a natural monopoly is to: a. impose a price floor to eliminate the deadweight loss. b. impose a price ceiling to eliminate any economic profit. c. break it up into smaller firms. d. do all of the above. 3.A monopoly can choose the price or it can choose the quantity, but it cannot choose price and quantity independent of each other.---True or False 5.A situation in which each firm acts in order to raise the profits of its rivals (and of itself) without any formal agreement between firms is known as tacit collusion.---True or False 6.Gary’s Gas and Frank’s Fuel are the only 2 providers of gasoline in Smalltown and decide to form a cartel to raise the price of gasoline. The total industry profits are highest when ____and Gary’s profits are highest when ____. a. neither firm cheats on the agreement; neither firm cheats on the agreement. b. neither firm cheats on the agreement; Gary cheats on the agreement and Frank does not cheat. c. both firms cheat on the agreement; Gary cheats on the agreement and Frank does not cheat. d. both Gary and Frank cheat on the agreement; both Gary and Frank cheat on the agreement. 7.The most important source of oligopoly is: a. economies of scale b. government-created barriers c. technological superiority d. all of the above 8.In the long run, monopolistically competitive firms: a. produce output at the level that minimizes average total cost. b. set marginal revenue equal to price. c. can’t earn a profit. d. produce so that marginal cost equals price. 9.If the toothpaste market is monopolistically competitive, product differentiation will take place in which of the following forms? a. different varieties of toothpaste-including whitening agents. b. differentiation in the locations that certain toothpastes are available. c. quality differences among the various brands. d. all of the above. 10.A warranty on a DVD player is an example of paying to avoid risk.---True or False 11.Mary and Bob are trying to decide how much auto insurance to buy. They share the same expectations of an accident, with the same dollar loss. They also have the same income levels. But, Mary would rather buy very little insurance, while Bob would rather buy much more insurance. This suggests that: a. Bob is more risk-averse than Mary. b. Mary is more risk-averse than Bob. c. Bob is risk-averse and Mary is risk-loving. d. Mary is risk-averse and Bob is risk-loving. 12.If government officials set an emissions tax too high: a. there will be too little pollution. b. there will be too much pollution. c. the marginal social cost of pollution will exceed the marginal social benefit of pollution d. both b and c. 13.An externality is said to be internalized: a. when individuals take external costs and benefits into account in their decision making. b. in situations in which the Coase theorem is irrelevant or can’t be applied. c. when individuals successfully petition the government to ban or restrict activities that generate negative externalities. d. when individuals learn to adapt to negative externalities through introspection or internal acceptance of what are viewed as unchangeable facts of life. 15.With tradable emissions permits, the price of the permit is determined by: a. the government b. the supply and demand of permits c. environmental protection organizations d. WTO 17.Which of the following goods is most likely an artificially scarce good? a. tickets to a boxing match b. pay per view of a boxing match c. health care d. the police department 18.Which of the following is used to provide public goods? a. voluntary contributions b. taxes c. self-interested business firms d. all of the above 19. A public good is: a. excludable and rival in consumption b. no excludable and nonrival in consumption c. excludable and nonrival in consumption d. no excludable and rival in consumption 20.A ticket to a concert is excludable if the concert hall can prevent people who don’t have a ticket from entering.----True or False 22.Which of the following is one of the leading causes of poverty in the U.S? a. lack of adequate employment b. lack of education and poor proficiency in English c. discrimination d. all of the above 23.A lump-sum tax, such as the fee for a driver’s license, does not take into consideration: a. efficiency b. benefits principle c. ability-to-pay principle d. tax base 24.which of the following situations provides an example of the benefits principle? a. employed workers pay taxes that are used to fund technical training programs. b. revenue from the federal tax on gasoline is used to maintain and improve the Interstate Highway system. c. Most of the revenue from property taxes is used to fund public schools. The taxes are paid by all homeowners. d. taxes on cigarettes are used to pay state employees’ salaries. 25.Tax cuts authorized between 2000 and 2004 tended to favor the rich, but the federal tax system remains progressive overall. But, taxes at the state and local level are regressive.----True or False.
Public Comments
- 1. d. monopoly profits can continue to exist in the long run, because the monopoly produces more and charges a higher price than a comparable perfectly competitive industry. A monopoly produces less than a comparable perfectly competitive industry. 2. b. impose a price ceiling to eliminate any economic profit. The government can't break up a natural monopoly into smaller firms because of the large investment required, and since it's a monopoly, a price floor makes little sense since the firm controls the price. A price ceiling makes sense to prevent the monopolist from overcharging consumers. 3. True, the demand curve gives the possible price-quantity combinations. 5. true 6. b. neither firm cheats on the agreement; Gary cheats on the agreement and Frank does not cheat. 7. d. all of the above All of the factors can contribute to a small number of firms having large market power. 8. c. can’t earn a profit. 9. d. all of the above. All of the examples are of nonprice competition, which is a characteristic of monopolistic competition. 10. True 11. a. Bob is more risk-averse than Mary. 12. a. there will be too little pollution. It may sound odd, but it means that at the equilibrium price, the marginal social benefit exceeds the marginal social cost. 13.a. when individuals take external costs and benefits into account in their decision making. 15. b. the supply and demand of permits Tradeable means it's determined by the market 17.b. pay per view of a boxing match The tickets are limited by the capacity of the venue, but there is no limit on how many people can watch it on tv 18. b. taxes Generally, they're not provided privately 19. b. no excludable and nonrival in consumption 20. true 22. b. lack of education and poor proficiency in English They all factor in somewhat, but b is the main one 23. c. ability-to-pay principle Everybody pays the same amount, no matter how much money they have 24. b. revenue from the federal tax on gasoline is used to maintain and improve the Interstate Highway system. The people who pay the taxes are the ones who receive the benefits 25. The first part is true, and the second part is true with regards to sales taxes
