Question 35 An unregulated natural monopolist will produce the quantity at which

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Question 35
An unregulated natural monopolist will produce the quantity at which
Question 35 options:
1) average total costs are minimized.
2) marginal cost equals marginal revenue.
3) marginal cost equals the long run average cost curve.
4) the long-run average cost curve intersects the demand curve.
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Question 36 (2 points)
All of the following are possible criticisms of social regulation EXCEPT
Question 36 options:
1) that the costs may outweigh the benefits.
2) that social regulation may create anticompetitive effects.
3) that the regulations have not resulted in safer working conditions.
4) that the regulations lead to higher production costs.
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Question 37 (2 points)
Natural monopolies
Question 37 options:
1) have one lowest-cost producer in an industry.
2) are not regulated.
3) have long-run average costs equal to zero.
4) do not experience economies of scale.
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Question 38 (2 points)
Regulation of a natural monopoly that forces it to price and produce as if it were a competitive firm results in
Question 38 options:
1) the market being instantly competitive.
2) higher profits for the monopoly.
3) economic losses for the monopoly.
4) a highly unstable marketplace.
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Question 39 (2 points)
Since World War II, world trade has
Question 39 options:
1) decreased in importance as nations turn inward due to security concerns.
2) increased, but not as dramatically as annual world real GDP has climbed.
3) risen sharply, outpacing gains in annual world real GDP.
4) increased in relative importance for most nations, but not for the United States.
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Question 40 (2 points)
For the United States since 1950, imports as a percentage of GDP has
Question 40 options:
1) tripled.
2) increased slightly.
3) remained constant.
4) decreased.
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Question 41 (2 points)
Specialization in trade will be economically efficient if it is based upon
Question 41 options:
1) national security needs.
2) absolute advantage.
3) comparative advantage.
4) government regulations.
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Question 42 (2 points)
That each individual should engage in economic activities in which he or she is relatively more efficient is an application of the concept of
Question 42 options:
1) competition.
2) absolute advantage.
3) scarcity.
4) comparative advantage.
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Question 43 (2 points)
The ability to produce a good or service at a lower opportunity cost than other producers is
Question 43 options:
1) absolute advantage.
2) comparative advantage.
3) opportunity advantage.
4) special advantage.
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Question 44 (2 points)
Selling a good abroad below the price charged in the home market, or at a price below the cost of production is called
Question 44 options:
1) dumping.
2) import substitution.
3) a quota.
4) a tariff.
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Question 45 (2 points)
For infant industry tariff protection to be valid requires that
Question 45 options:
1) the tariff must be allowed to last forever.
2) only industries that currently are producing efficiently should be protected.
3) government officials must predict which industries will eventually be able to compete with more established foreign producers.
4) the industries protected must have substantial monopoly power in the absence of foreign competition.
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Question 46 (2 points)
Dumping is defined as
Question 46 options:
1) selling a good abroad at prices above the costs of the firms in the foreign countries.
2) exporting goods that are of inferior quality.
3) selling a good abroad at prices below its cost of production or below the price charged in the home market.
4) exporting goods that are sources of pollution.
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Question 47 (2 points)
Using trade restrictions to protect special interests such as the U.S. auto industry
Question 47 options:
1) results in lower prices for U.S. auto consumers.
2) raises the prices that U.S. consumers must pay for autos.
3) is a very cost-efficient way of dealing with trade problems.
4) is the best long-term solution for threatened U.S. jobs.
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Question 48 (2 points)
The WTO replaced the GATT in
Question 48 options:
1) 1900.
2) 1945.
3) 1960.
4) 1995.
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Question 49 (2 points)
The balance of payments is
Question 49 options:
1) the value of goods and services bought and sold in the world market.
2) a summary record of a country's economic transactions with foreign residents and governments.
3) a summary record of a country's purchases and sales of goods and services in the world market.
4) the value of merchandise goods bought and sold in the world market.
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Question 50 (2 points)
An example of a unilateral transfer is
Question 50 options:
1) a gift to a relative who lives abroad.
2) a check received in payment for an import.
3) gold payments to foreign companies.
4) SDR payments to world creditors.

Explanation / Answer

35. 2) 36. 3) 37. 1) 38. 1) 39. 3) 40. 1) 41.3) 42.4) 43.1) 44.1) 45.3) 46.3) 47.2) 48.4) 49.3) 50.2)

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