61. If a regulator sets the price equal to the natural monopolist\'s marginal co
ID: 1250868 • Letter: 6
Question
61. If a regulator sets the price equal to the natural monopolist's marginal cost, (Points: 1)the monopoly will experience a loss
the monopoly will earn a profit
the monopoly will earn zero profit
consumers will be worse off than they would be if the firm's profit maximization activities were unregulated
62. The purpose of antitrust laws is to (Points: 1)
reduce anticompetitive activities
increase anticompetitive activities
guarantee worker safety
promote quality products
63. Increased international trade and deregulation have resulted in (Points: 1)
increased competition in the U.S. economy
greater monopolization of industries in the U.S. economy
more oligopolies and cartels in the U.S. economy
greater government intervention in the U.S. economy
64. Individuals serving on the boards of directors of competing firms is called (Points: 1)
interlocking directorates
tying contracts
the rule of reason
exclusive dealing
65. Public choice theory suggests that political candidates try to get elected by (Points: 1)
appealing to conservatives
appealing to liberals
appealing to senior citizens
appealing to the median voter
66. Why might two presidential candidates appear to have very similar opinions during an election year even if they come from different parties? (Points: 1)
They aim to please special-interest groups.
They are logrolling.
They try to appeal to the median voter.
Republicans and Democrats usually agree on most issues.
67. Special-interest legislation usually (Points: 1)
has widespread benefits and costs
has concentrated benefits and costs
has concentrated benefits but widespread costs
concerns the provision of public goods
68. Filing a fraudulent income tax return that understates income or overstates deductions is known as (Points: 1)
tax evasion
logrolling
tax avoidance
rent seeking
69. Deforestation is occurring in tropical areas because (Points: 1)
the value of jobs created by deforestation exceeds the cost to society
long-run economic considerations outweigh short-run considerations
there is no property right to the earth's climate
global economic considerations outweigh domestic considerations
70. A pollution tax (Points: 1)
is itself a form of negative externality
is a positive externality used to offset a negative one
is a price per unit of discharge of pollution
is a tax on pollution control equipment
71. Education confers positive externalities because (Points: 1)
some education is done outside the market (i.e., in public schools)
curricula are regulated by the government, even in private schools
an educated person consuming education gains many benefits he or she did not expect when the process started
an educated person who has consumed education usually behaves in a way that benefits others
72. If education creates positive externalities, (Points: 1)
private markets provide less than the socially optimal quantity of education
private markets provide more than the socially optimal quantity of education
the marginal private benefit curve is higher than the marginal social benefit curve
the marginal private cost curve is higher than the marginal social cost curve
73. If firms expect greater demand for their products, invest in more capital and hire more labor, (Points: 1)
there will likely be an increase in inflation and a rise in taxation
the business cycle is likely to be moving from peak to trough
their behavior may encourage the very prosperity that they expect
government will probably have to spend more and tax less to offset the economic impacts of these business decisions
74. An increase in government spending, other things constant, would cause a (Points: 1)
leftward shift of the aggregate supply curve
rightward shift of the aggregate supply curve
leftward shift of the aggregate demand curve
rightward shift of the aggregate demand curve
75. The Keynesian approach to fiscal policy calls for (Points: 1)
budget deficits during periods of inflationary pressure
budget surpluses during periods of high unemployment
a balanced budget despite the state of the economy
tax cuts during recession
76. Fine-tuning the economy means (Points: 1)
making government economic policy more "people oriented"
using government policies to adjust the economy and promote economic stability
tinkering with microeconomic problems such as externalities and losing sight of the big picture
placing fewer regulations on the private sector, thereby eliminating the need for government intervention
77. Stagflation refers to (Points: 1)
a combination of rising unemployment and rising trade deficits
a combination of high unemployment and rising prices
high and rapidly increasing inflation
extremely high unemployment
78. Labor productivity is measured by (Points: 1)
total employment/total output
total output/total employment
labor force/total output
total output/labor force
79. An improvement in the quality of capital would (Points: 1)
rotate the per-worker production function upward
make the per-worker production function flatter
shift the per-worker production function downward
rotate the per-worker production function downward
80. According to the convergence theory, (Points: 1)
less-developed countries should grow faster than advanced ones because of the ability to copy new technology
the growth rates of all countries converge because in the long run, all resources are alike
human capital differences can never be made up
GDP and productivity growth rates should converge over time
Explanation / Answer
61.C 62.A 63.A 64.A 65.D 66.C 67.C 68.A 69.C 70.C 71.D 72.A 73.C 74.D 75.D 76.B 77.B 78.D 79.C 80.A
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