Question 1

Potential profits encourage new firms to try to figure out ways to break down methods of protecting monopolies.

Accepted Answer

A) True 
 B)False

Question 2

The fact that U.S. managers' salaries are substantially greater than those of comparable managers in Japan may be related to:

Accepted Answer

A) an increase in the demand for CEOs. 
B) an increase in the supply of CEOs. 
C) the comparatively greater competitive markets in Japan. 
D) the greater number of public goods provided in the United States. 
A) an increase in the demand for CEOs. 
B) an increase in the supply of CEOs. 
C) the comparatively greater competitive markets in Japan. 
D) the greater number of public goods provided in the United States.

Question 3

Refer to the following graph.   A lazy monopolist is best described by earning area A and B in profits.

Accepted Answer

A) True 
 B)False

Question 4

Suppose a lazy monopolist's fixed costs are higher than the fixed costs of an efficient monopolist. In all other respects the monopolists are the same. Which of the following statements about this lazy monopolist is true?

Accepted Answer

A) Its total profit is lower than that of the monopolist producing efficiently. 
B) Its total profit is the same as that of the monopolist producing efficiently. 
C) Its total revenue is less than that of the monopolist producing efficiently. 
D) It produces less than does the monopolist producing efficiently. 
A) Its total profit is lower than that of the monopolist producing efficiently. 
B) Its total profit is the same as that of the monopolist producing efficiently. 
C) Its total revenue is less than that of the monopolist producing efficiently. 
D) It produces less than does the monopolist producing efficiently.

Question 5

In a natural monopoly, and in platform monopolies that have natural monopoly elements, the average cost:

Accepted Answer

A) decreases with additional production. 
B) increases with additional production. 
C) remains constant with additional production. 
D) vacillates up and down with additional production. 
A) decreases with additional production. 
B) increases with additional production. 
C) remains constant with additional production. 
D) vacillates up and down with additional production.

Question 6

Economists describe competition as a market structure,a specific type of institutional arrangement.In what other way can the term "competition" be used? Explain your answer.

Accepted Answer

Characterizing competition simply as an

Question 7

How do you know that firms benefit society?

Accepted Answer

A) Entrepreneurs start businesses. 
B) Firms earn profits and produce goods. 
C) Firms pay taxes and employ people. 
D) Customers voluntarily pay for their products. 
A) Entrepreneurs start businesses. 
B) Firms earn profits and produce goods. 
C) Firms pay taxes and employ people. 
D) Customers voluntarily pay for their products.

Question 8

Which best characterizes the reason why electricity was deregulated?

Accepted Answer

A) New technology 
B) X-inefficiency 
C) Foreign competition 
D) Economies of scale 
A) New technology 
B) X-inefficiency 
C) Foreign competition 
D) Economies of scale

Exam 16: Real-World Competition and Technology

Potential profits encourage new firms to try to figure out ways to break down methods of protecting monopolies.

The fact that U.S. managers' salaries are substantially greater than those of comparable managers in Japan may be related to:

Refer to the following graph. A lazy monopolist is best described by earning area A and B in profits.

Suppose a lazy monopolist's fixed costs are higher than the fixed costs of an efficient monopolist. In all other respects the monopolists are the same. Which of the following statements about this lazy monopolist is true?

In a natural monopoly, and in platform monopolies that have natural monopoly elements, the average cost:

Economists describe competition as a market structure,a specific type of institutional arrangement.In what other way can the term "competition" be used? Explain your answer.

How do you know that firms benefit society?

Which best characterizes the reason why electricity was deregulated?

Economics and Economic Reasoning

The Production Possibility Model, Trade, and Globalization

Economic Institutions

Supply and Demand

Using Supply and Demand

Describing Supply and Demand: Elasticities

Taxation and Government Intervention

Market Failure Versus Government Failure

Comparative Advantage, Exchange Rates, and Globalization

International Trade Policy

Production and Cost Analysis I

Production and Cost Analysis II

Perfect Competition

Monopoly and Monopolistic Competition

Oligopoly and Antitrust Policy

Work and the Labor Market

Who Gets What the Distribution of Income

The Logic of Individual Choice: the Foundation of Supply and Demand

Game Theory, Strategic Decision Making, and Behavioral Economics

Thinking Like a Modern Economist

Behavioral Economics and Modern Economic Policy

Microeconomic Policy, Economic Reasoning, and Beyond

Economic Growth, Business Cycles, and Unemployment

Measuring and Describing the Aggregate Economy

The Keynesian Short-Run Policy Model: Demand-Side Policies

The Classical Long-Run Policy Model: Growth and Supply-Side Policies

The Financial Sector and the Economy

Monetary Policy

Financial Crises, Panics, and Unconventional Monetary Policy

Deficits and Debt: the Austerity Debate

The Fiscal Policy Dilemma

Jobs and Unemployment

Inflation, Deflation, and Macro Policy

International Financial Policy

Macro Policy in a Global Setting

Structural Stagnation and Globalization

Macro Policy in Developing Countries

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