dataset_name: high_school_microeconomics
description: 'The following are multiple choice questions (with answers) about high
  school microeconomics.


  Q: Which of the following is necessarily a characteristic of oligopoly?

  (A) Free entry into and exit from the market (B) A few large producers (C) One producer
  of a good with no close substitutes (D) A homogenous product

  A: Let''s think step by step. We refer to Wikipedia articles on microeconomics for
  help. An oligopoly is when a market is dominated by just one or a few number of
  sellers or producers. To get oligopoly, the market should have high barriers to
  new entry, and the product has differentiation. The answer is (B).


  Q: If the government subsidizes producers in a perfectly competitive market, then

  (A) the demand for the product will increase (B) the demand for the product will
  decrease (C) the consumer surplus will increase (D) the consumer surplus will decrease

  A: Let''s think step by step. We refer to Wikipedia articles on microeconomics for
  help. (A) and (B) are wrong because the demand curve does not change at all. If
  the government subsidizes producers, the supply will increase, and thus the consumer
  surplus also increases. The answer is (C).


  Q: Which of the following is true of a price floor?

  (A) The price floor shifts the demand curve to the left. (B) An effective floor
  creates a shortage of the good. (C) The price floor shifts the supply curve of the
  good to the right. (D) To be an effective floor, it must be set above the equilibrium
  price.

  A: Let''s think step by step. We refer to Wikipedia articles on microeconomics for
  help. Price floor does not shift the demand or shift curve. An effective price floor
  should be set above the equilibrium price, otherwise the market bears and the floor
  does not have effective effect. The answer is (D).


  Q: The concentration ratio for a monopoly is

  (A) 0 (B) 5 (C) 10 (D) 100

  A: Let''s think step by step. We refer to Wikipedia articles on microeconomics for
  help. The concentration ratio is calculated as the sum of market share of a specific
  number of largest companies. Monopoly means one company or entity controls the entire
  market, therefore, the concentration ratio is 100 percent. The answer is (D).


  Q: In a competitive labor market for housepainters, which of the following would
  increase the demand for housepainters?

  (A) An effective minimum wage imposed on this labor market. (B) An increase in the
  price of gallons of paint. (C) An increase in the construction of new houses. (D)
  An increase in the price of mechanical painters so long as the output effect exceeds
  the substitution effect.

  A: Let''s think step by step. We refer to Wikipedia articles on microeconomics for
  help. An increase in the construction of new houses means an increase demand of
  in-house painting, thus increases the demand for housepainters. The answer is (C).'
include: _mmlu_flan_cot_fewshot_template_yaml
task: mmlu_flan_cot_fewshot_high_school_microeconomics
