Explore BrainMass
Share

Explore BrainMass

    Multiple Choice

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    I am looking for help on the following multiple choice questions.

    1. At the equilibrium output for a monopolistic competitor:
    Price equals marginal cost equals marginal revenue
    Price equals average total cos equals marginal revenue
    Marginal cost equals marginal revenue equals average total costs
    Price equals average total cost and marginal cost equals marginal
    revenue

    2. For a cartel to be successful in increasing economic profits for its
    members:
    Entry of new firms must be blocked
    Price must be set equal to marginal cost
    Individual firms must be encouraged to adjust output so as to maximize
    their own profits at the cartel price
    Price must be set equal to average total cost

    3. Once vaccinated a person cannot catch a cold nor give a cold to someone else. As a result the marginal social benefit resulting from consumption of the vaccine:
    Exceeds the marginal benefit received by consumers of the vaccine
    Equals the marginal social cost of producing the vaccine in a
    competitive equilibrium.
    is less than the marginal benefit received by consumers of the
    vaccine.

    4. A rightward shift of the marginal social benefit curve for pollution
    control:
    Has no effect on the efficient percentage reduction in polluting
    abatement.
    Makes it efficient to spend more on pollution abatement.
    Makes it efficient to spend less on pollution abatement.
    Makes pollution abatement cheaper.

    5. A 2004 article written immediately after the re-election of George
    W. Bush referred to his environmental policy system where power
    plants buy and sell the right to pollute in the form of emission
    credits. Do economists tend to favor this approach to pollution
    control:
    No; these programs are ineffective because they encourage major
    polluters to free ride on the efforts of others.
    No; it is possible for some firms to do nothing if they simply buy
    enough credits.
    Yes; they encourage all firms to cut pollution by the same
    percentage.
    Yes; they believe that such a proposal would achieve a level of
    pollution reduction with the lowest cost to society.

    6. If a positive externality is associated with the purchase of smoke
    detectors:
    The marginal social benefit of smoke detectors exceeds their price
    The marginal social benefit of smoke detectors is zero
    The marginal social benefit of smoke detectors equals their price
    More than the efficient quantity of smoke detectors will be sold

    7. What do economists mean when they say there is "market failure"?
    Business has introduced a product that consumers did not want
    Free markets have led to excessive profits
    Markets have surpluses or shortages so that government rationing is
    necessary.
    Free markets yield results that economists do not consider socially
    optimal.

    8. A market for information is more likely to develop even in the
    absence of government regulation of information as long as the
    marginal:
    Cost of information is zero
    Benefit of information is zero
    Cost of information exceeds the marginal benefit
    Benefit of information exceeds the marginal cost

    9. A widget has an opportunity cost of 4 wadgets in Saudi Arabia and 2
    wadgets in the United States. Given these opportunity costs, you
    would suggest that:
    Saudi Arabia specialize in widgets and the US in wadgets
    No trade should take place
    Saudi Arabia specialize in wadgets and the US in widgets
    Both countries produce an equal amount of each.

    10. Some residents of Key West, an island located at the end of the
    Florida Keys, fly the flag of the Conch Republic to empahasize that
    they are different from the rest of the U.S. Suppose that Key West
    separated from the U.S. and that all trade between it and the rest
    of the U.S. ceased. What would happen?
    The U.S. would be little affected while the effects on the Key West
    would be large.
    Key West would be little affected while the effects on the U.S.
    would be large
    Both the U.S. and Key West would be affected about equally
    We cannot know without knowing about their bargaining abilities

    11. Isolationism a policy of trying to minimize a nations political and
    economic interactions with the rest of the world:
    Has always been key part of American politics
    Was important until the late 19th century and then declined
    Rose in America in the late 19th century and was an important
    political element until World War II
    Rose to importance in the U.S. after World War II

    12. All of the following are arguments in support of protectionist
    legislation except
    Supporting infant industries
    Preserving domestic employment
    Increasing global trade
    Promoting National Security

    13. In the early 2000s, China taxed its textile exports when the
    international quota system for textiles expired. Many countries
    were worried about rapid Chines expansion into textiles, and there
    was discussion of new tariffs and quotas to slow an anticipated
    increase in Chinese exports. Is there any advantage to China for
    imposing export tariffs rather than having importers impose import
    tariffs?
    No; Both result in fewer jobs in China and higher prices in the U.S.
    Yes; With a Chinese export tariff, China would get the revenue,
    whereas with an American import tariff, the U.S. would get the
    revenue.
    Yes; With the Chinese export tariff, China will lose fewer jobs than
    it would with an American import tariff
    Yes; with the Chinese export tariff, prices will not rise in the U.S.
    as they would with an American import tariff

    14. If the primary purpose of a tariff is to completely eliminate foreign
    competition, it will be expected to:
    Raise either a large or a small amount of revenue depending on the
    magnitude of the tariff imposed
    Raise a relatively large amount of tax revenue
    Raise an amount of revenue equal to the amount of the tariff
    multiplied by the volume of exports
    Raise a relatively small amount of tax revenue.

    © BrainMass Inc. brainmass.com October 10, 2019, 12:12 am ad1c9bdddf
    https://brainmass.com/economics/international-policies/multiple-choice-283049

    Solution Preview

    I am looking for help on the following multiple choice questions.

    1. At the equilibrium output for a monopolistic competitor:
    Price equals marginal cost equals marginal revenue
    Price equals average total cos equals marginal revenue
    Marginal cost equals marginal revenue equals average total costs
    Price equals average total cost and marginal cost equals marginal
    revenue
    Price equals average total cost and marginal cost equals marginal
    revenue
    2. For a cartel to be successful in increasing economic profits for its
    members:
    Entry of new firms must be blocked
    Price must be set equal to marginal cost
    Individual firms must be encouraged to adjust output so as to maximize
    their own profits at the cartel price
    Price must be set equal to average total cost
    Entry of new firms must be blocked. This is the purpose of a cartel.
    3. Once vaccinated a person cannot catch a cold nor give a cold to someone else. As a result the marginal social benefit resulting from consumption of the vaccine:
    Exceeds the marginal benefit received by consumers of the vaccine
    Equals the marginal social cost of producing the vaccine in a
    competitive equilibrium.
    is less than the marginal benefit received by consumers of the
    vaccine.
    Exceeds the marginal benefit received by consumers of the vaccine. This is why vaccines are subsidized by governments.
    4. A rightward shift of the marginal social benefit curve for pollution
    control:
    Has no effect on the efficient percentage reduction in polluting
    abatement.
    Makes it efficient to spend more on pollution abatement.
    Makes it efficient to spend less on pollution abatement.
    Makes pollution abatement cheaper.
    Makes pollution abatement cheaper. The same amount of abatement at a relatively lower cost.
    5. A 2004 article written immediately after the re-election of George
    W. Bush referred to his ...

    Solution Summary

    This explanation provides you a comprehensive argument relating to Multiple Choice

    $2.19