ĐỀ 1 KTVM

The price paid by buyers in a market will decrease if the government

• increases a binding price floor in that market.

• decreases a tax on the good sold in that market.

• increases a binding price ceiling in that market.

• All of the above are correct.

If, at the current price, there is a shortage of a good, then

• sellers are producing more than buyers wish to buy.

• the market must be in equilibrium.

• quantity demanded equals quantity supplied.

• the price is below the equilibrium price.

Total surplus in a market will increase when the government

• imposes a tax on that market.

• removes a binding price ceiling from that market.

• imposes a binding price floor on that market.

• None of the above is correct.

When marginal revenue equals marginal cost in a competitive market , the firm

• may be minimizing its losses, rather than maximizing its profit.

• should increase the level of production to maximize its profit.

• must be generating economic losses.

• must be generating economic profits.

A profit-maximizing firm in a competitive market is able to sell its product for 11. Its marginal cost curve crosses the marginal revenue curve at an output level of 10 units. Then the firm experiences

• a loss of exactly $20.

• a loss of more than $20.

• a profit of more than $20.

• a profit of exactly $20.

"Prices rise when the government prints too much money" is an example of a

• normative economic statement.

• positive economic statement.

• welfare statement.

• statement made by the Carter administration.

A binding price floor will reduce a firm's total revenue

• never.

• when demand is inelastic.

• always.

• when demand is elastic.

If you want to know how an increase in the price of ice cream at the next-door Ice Cream Shoppe affects the demand for frozen yogurt in your shop, you would compute the

• income elasticity of demand.

• price elasticity of demand.

• price elasticity of supply.

• cross-price elasticity of demand.

Whenever a perfectly competitive firm chooses to change its level of output, holding the price of the product constant, its marginal revenue

• does not change.

• increases.

• decreases.

• increases if MR < ATC and decreases if MR > ATC.

A result of welfare economics is that the equilibrium price of a product is considered to be the best price because it

• minimizes the level of welfare payments.

• minimizes costs and maximizes output.

• maximizes the combined welfare of buyers and sellers.

• maximizes both the total revenue for firms and the quantity supplied of the product.