BEST ANSWER WILL GO TO SOMEONE WHO DOESN\'T JUST PUT RANDOM LETTERS - I\'m looki

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BEST ANSWER WILL GO TO SOMEONE WHO DOESN'T JUST PUT RANDOM LETTERS - I'm looking for someone to explain WHY its the best answer.

1. Which of the following is FALSE about public-sector decision making?

A. Decisions are based on majority rule.    

B. The price charged to consumers is often less than its full opportunity cost.

C. Decisions involve no opportunity cost.

D. Incentives play a role in decision making.

2. The graph which represents the distribution of income in an economy is called the

A. Laffer curve.

B. Lorenz curve.

C. Distribution curve.

D. Aggregate demand curve.

3. Which of the following CANNOT be eliminated in a growing economy such as the U.S. economy?

A. absolute poverty  

B. relative poverty

C. both absolute and relative poverty

D. Neither absolute nor relative poverty can be eliminated.

4. Critics argue that a system of national health insurance would:       

A. increase government ownership of hospitals, clinics, and nursing homes, thereby raising their cost       

B. increase the number of doctors beyond the point of MB = MC

C. increase the waiting time for many medical services and procedures

D. reduce or remove a consumer's right to choose a physician

5. In monopolistic competition in the long run, which of the following will be true?

A. Economic profit is zero.

B. All of the answers are correct.

C. P = MC.

D. ATC is minimized.

6. Which of the following describes monopolistic competition?

A. Advertising plays a key role

B. There is only one seller in the industry

C. Homogenous products

D. P = MR = MC

7. Strategic behavior and game theory are features of which market structure?        

A. Perfect competition

B. Monopoly

C. Monopolistic competition

D. Oligopoly

8. Which of the following is a characteristic of oligopoly?

A. Easy entry and exit

B. Many firms

C. Strategic dependence

D. None of these

Explanation / Answer

1. C. Decisions involve no opportunity cost.

2. B. Lorenz curve

3. B. relative poverty

4. C. increase the waiting time for many medical services and procedures

5. A. Economic profit is zero.

6. A. Advertising plays a key role

7. D. Oligopoly

8. C. Strategic dependence

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