Q:1-Which of the following would result in an increase in both the equilibrium price and quantity for a normal good?
Mark one answer:
The government sets a price floor above the current market price
A new subsidy for production of the good comes into effect
Price of a complementary good decreases
Price of a substitute good decreases

Q:6-Use the following table to answer the question below:

Above is a portion of the cost structure for a theoretical firm with total fixed costs of 30. Which of the following can you say about this portion of the firm's cost structure?
Mark one answer:
Decreasing returns to scale
Constant returns to scale
Increasing returns to scale
None of the other answers

Q:7-To establish a socially optimal price for a natural monopoly, the government should select the price level at which _____.
Mark one answer:
average total cost equals average revenue
marginal cost equals average revenue
marginal cost equals demand
average total cost equals average total revenue

Q:8-The Gini coefficient is a measure of _____.
Mark one answer:
Gross National Product
Net Exports
inflation
income inequality

Q:9-Which of the following is true of public goods?
Mark one answer:
Public goods are non-rival and non-excludable.
Public goods are rival and non-excludable.
The price of public goods is determined by market factors.
Public goods are rival and excludable.

Q:10-Refer to the following chart for this question:

If each product is sold for $2, what is the marginal revenue product of labor for the fourth unit of labor?
Mark one answer:
$4
$8
$6
$10