Question

(This question refers to the MRU video 'The Costs and Benefits of Monopoly'.) The major cost of monopoly is that:

Select one:

a. market output is too high.

b. the price is too high.

c. it is inefficient.

d. there is only one producer.

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Question 42

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Firm profit is defined as:

Select one:

a. total revenue minus total cost.

b. total revenue plus total cost.

c. marginal revenue plus marginal cost.

d. marginal revenue minus marginal cost.

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Question 43

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When it comes to deciding on whether to vote for the incumbent party, voters:

Select one:

a. prefer incumbents the longer they have been in power.

b. are more likely to vote out the incumbent party after strong growth in disposable income.

c. focus on the state of the economy in the year of the election.

d. are farsighted and consider the impact of the incumbent party's future policies.

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Question 44

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Figure: Tax Imposed on Sellers

Reference: Ref 6-4

(Figure: Tax Imposed on Sellers) According to the figure, the price that buyers pay AFTER the tax is imposed is:

Select one:

a. $5.

b. $4.40.

c. $3.40.

d. $4.

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Question 45

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Both public goods and common resources are:

Select one:

a. nonrival in consumption.

b. excludable.

c. rival in consumption.

d. nonexcludable.

Answer 1

Ans 41: The major cost of monopoly is that: c. it is inefficient. (creates Deadweight loss in the society)

Ans 42: Firm profit is defined as:a. total revenue minus total cost. (This is the correct formula)

Ans 43: When it comes to deciding on whether to vote for the incumbent party, voters: b. are more likely to vote out the incumbent party after strong growth in disposable income. (Voters generally check the change in their disposable income and accordingly vote)

Ans 44: According to the figure, the price that buyers pay AFTER the tax is imposed is: Figure is not given, so not possible to answer.

Ans 45: Both public goods and common resources are: d. nonexcludable. (Public goods are both non-rival and nn-excludable but common resources rival and non-excludable in nature).