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Recall the application regarding opening a Dunkin’ Donuts shop and the small barriers to entering the donut business. What should an owner of a Dunkin’ Donut shop expect in a monopolistically competitive market? A) total revenue equal to total cost […]

Refer to Figure 8.9. Which point of the LAC represents diseconomies of scale? A) a B) b C) c D) e Assume that the price of a DVD player is $50. If Joshua is willing to pay $50 for that […]

In the prisoners’ dilemma the prisoners are allowed to communicate. A change in the price of a product will change the supply of that product. Answer: FALSE Governments occasionally get involved in creating a market equilibrium by setting a maximum […]

A restriction on imports is likely to cause further restrictions on trade. Input prices fall as entry occurs in an increasing-cost industry. Answer: FALSE Under Temporary Aid to Needy Families a recipient loses their cash benefits when they get a […]

Trade will be beneficial for a nation with a comparative advantage in producing a certain product. Accounting costs include all monetary payments and all the opportunity cost of inputs that do not require an explicit monetary payment. Answer: FALSE A […]

Since 1973, in the United States wages of skilled workers have: A) risen more slowly than those of unskilled workers. B) fallen due to foreign trade. C) remained constant. D) risen faster than those of unskilled workers. Producer surplus is […]

Julianne runs a business and needs to decide how many hours to stay open. Table 2.2 illustrates her marginal costs of staying open for each additional hour. Suppose that Julianne’s marginal benefit of staying open per hour is $3. If […]

Suppose the price elasticity of supply for poker chips is .7 and the price decreases by 30%. The quantity supplied will decrease by ________ %. A) 25 B) 30 C) 15 D) 21 Which of the following trade policies raises […]

Refer to Figure 4.1, which shows Molly’s and Ryan’s individual demand curves for compact discs per month. Assuming Molly and Ryan are the only consumers in the market, if the market quantity demanded is 15, the price must be: A) […]

Refer to Figure 12.1. Six firms that produce chewing gum have formed a cartel. The cartel faces the market demand curve given by D. To maximize profits, the cartel should produce ________ packs of chewing gum and the price should […]

Which one of the following is NOT a retaliation strategy that firms would apply to one that cheated on a price-fixing scheme by selling at a price below the agreed-upon fixed price? A) All other firms sell at the same […]

The proportion of the tax burden that falls on consumers depends on: A) the price elasticity of demand. B) the size of the tax. C) the price elasticity of supply. D) both A and C A study done about gender […]

A natural monopoly is inevitable if the entry of a second firm shifts the demand curve facing each individual firm entirely below the average cost curve. When there is imperfect information, a role of government is to disseminate information and […]

Under which conditions might diseconomies of scale result? A) hampered coordination brought about by bureaucracy B) increasing costs of inputs C) the firm uses a large amount of indivisible inputs D) both A and B If a variable is 100 […]

A reason for the increase in demand for workers with high levels of labor skills is: A) greater taxes paid on income earned. B) increased technological advances. C) reduced international trade from protectionism. D) B and C are correct. Figure […]

If a product is a necessity and has no substitutes at all, demand for the product is most likely to be: A) very inelastic. B) inelastic. C) unitary elastic. D) elastic. The rational outcome of a guaranteed price matching or […]

In the game shown in Table 12.2, when the firms choose their dominant strategies: Table 12.2 A) profits are lower than when the firms choose the strategy that is not the dominant strategy. B) the firms will make the highest […]

An arrangement that allows buyers and sellers to exchange things is called: A) a contract. B) a market. C) money. D) efficient. Which of the following statements about the gender gap in income is INCORRECT? A) Women are underrepresented in […]

Diminishing marginal returns implies that: A) marginal costs are decreasing. B) marginal costs are increasing. C) marginal costs are constant. D) marginal costs may be increasing or decreasing. If a natural monopoly is forced to follow a policy of average-cost […]

All goods that generate external benefits are public goods. A private good with external benefits is a public good. Answer: FALSE A monopolistically competitive firm influences market price by virtue of its size. Answer: FALSE People will buy more of […]

Based on the Application, the marginal cost of sailing a ship faster is: A) more cargo delivered per year. B) more fuel cost incurred. C) less fuel costs incurred. D) less cargo delivered per year. Refer to Figure 5.6. The […]

Suppose that the income elasticity of demand for new clothes is positive. Other things being equal, which of the following statements is correct? A) New clothes are a normal good. B) The quantity demanded of new clothes decreases as a […]

A switch to marketable pollution permits will decrease abatement costs because high-cost firms do most of the abating. A contestable market is one where there are few if any barriers to entry. Answer: TRUE Monopolistic competition is characterized by barriers […]

Diminishing marginal returns occur only in the long run. Average fixed costs rise continuously as the quantity of output rises. Answer: FALSE A good is nonrival in consumption if it is not practical to exclude people who don’t pay for […]

Consider a market in which some high-quality goods are sold, but not as many as if there was perfect information about the quality of the good. This type of market is known as a: A) beneficial selection. B) thin market. […]

Figure 14.6 represents the market for health insurance. Suppose there are two types of consumers, low-cost consumers with $2,000 average medical expenses per year, and high-cost customers with $4,000 average medical expenses per year. The insurance companies estimate that 40% […]

An inferior good is defined as a good for which demand decreases when: A) the price increases. B) income increases. C) the price decreases. D) income decreases. Recall the Application. The federal government marketing order that helped reduce asymmetric information […]

If John drives more recklessly because he has good automobile insurance it is an example of moral hazard. The implementation of TANF helped reduce the number of people on welfare. Answer: TRUE In a grim trigger strategy, a firm responds […]

Sara sells beer in a perfectly competitive market. This week Sara receives a lower price for a keg of beer than she did last week. Which of the following statements could explain this? A) The market demand for beer increased. […]

Refer to Figure 9.6. At a market price of $20, this perfectly competitive profit maximizing firm should produce approximately ________ units. A) 30 B) 35 C) 40 D) 45 Refer to Figure 18.1. Mutually beneficial terms of trade between the […]

A Nash Equilibrium in a game is that outcome in which: A) each player is doing the best he or she can given the other player’s action. B) the players’ profits are equal. C) the players’ earn the highest profits […]

For country A, an export is a good produced in: A) country B and purchased by residents of country B. B) country B and purchased by residents of country A. C) country A and purchased by residents of country B. […]

Refer to Figure 5.1. Using the initial-value method, if the price of a hamburger is decreased from $10 to $8, the price elasticity of demand equals: A) 1.5. B) 5.0. C) 1.0. D) 2.0. When it comes to pollution, economists […]

In the Iowa Gambling Task, scientists have found that on average, subjects are able to articulate why they stopped drawing cards from unfavorable decks after drawing: A) 5 cards. B) 10 cards. C) 50 cards. D) 60 cards. Julianne runs […]

Refer to Table 7.8. Jessy spends no more than $75 per month on movies and eating out. The price of a movie is $8 and the price of a meal out is $15. If Jessy watches two movies per month, […]

Refer to Figure 10.5. The profit-maximizing level of profit for the Memory Company is: A) -$1,800. B) -$1,200. C) -$800. D) $0. Additional Application The 2005-2006 Florida citrus harvest has been tallied and is over $1 billion. This is the […]

The natural monopoly in Figure 13.3 wants to charge a price of: A) P1. B) P2. C) P3. D) P4. Refer to Figure 13.1. If the government regulates Armstrong Cable so they can earn only zero economic profit, the price […]

The type of product sold is what differentiates oligopoly markets from the other three market structure types (perfect competition, monopoly, and monopolistic competition). Economists will never reach the same conclusions in their positive analyses. Answer: FALSE The marginal cost curve […]

The equimarginal rule says that a person will maximize utility by choosing the good for which the marginal utility is the greatest. The long-run supply curve for a increasing cost industry is downward sloping. Answer: FALSE Suppose that the price […]

On the production possibilities curve in Figure 2.1 the gain from decreasing manufacturing production from 700 tons to 500 tons is: Figure 2.1 A) 700 tons of agriculture. B) 500 tons of agriculture. C) 200 tons of agriculture. D) 100 […]

A construction laborer might make more than a similarly skilled book store clerk because the working conditions in the book store are more desirable. The Justice Department will not allow firms to merge if the result will be higher prices […]

Which of the following statements is INCORRECT? A) A firm’s total economic cost is at least as large as the firm’s total accounting cost. B) A firm’s total economic cost includes both explicit cost and implicit cost of the firm. […]

According to the Application about productivity in the nation of Latvia in the 1990s,, workers in the EU were more productive than workers in Latvia in the 1990s, yet despite this, EU nations chose to trade with Latvia. Engaging in […]

Refer to Figure 7.3. If the price of video game rentals is $4, the utility maximizing combination is ________ video game rentals and ________ energy drinks. Figure 7.3 The price of Video Game rentals is $2 For MUA/$ and $4 […]

The firm depicted in Table 2.4 is likely to face diminishing returns because: Table 2.4 A) the amount of fertilizer can only be increased to 5. B) land and fertilizer are both fixed. C) land and fertilizer are both variable. […]

Importers collect additional revenues from a ________, and governments collect additional revenues from ________. A) tariff; voluntary export restraints B) quota; import bans C) quota; tariffs D) voluntary export restraint; quotas When Bob has to give up lunch in order […]

According to this Application, after the government deceased cigarette taxes in several Canadian provinces in 1994, the decrease in the price of cigarettes in these provinces: A) more than doubled the smoking rate. B) created no noticeable change in the […]

Deciding how products of a society are distributed among the citizens in an economy answers the economic question of: A) Who consumes the products produced? B) What will be produced? C) Where will the products produced be consumed? D) How […]

Suppose that Figure 10.5 shows a monopolist’s demand curve, marginal revenue, and its cost. The monopolist would maximize its profit by producing a quantity of ________ and by charging a price of ________. A) 35; $65 B) 50; $50 C) […]

When the firm increases output and the costs rise disproportionately faster, then the long-run average cost curve is ________ and the firm is experiencing ________. A) horizontal; constant returns to scale B) downward sloping; constant returns to scale C) upward […]

Monopoly reduces market efficiency compared to perfect competition. Due to crime externalities, a more educated society tends to have a lower level of crime. Answer: TRUE In the short run a manufacturing firm’s production equipment is a sunk cost. Answer: […]

Assume that Lorex is the only pharmaceutical company that has a patent in producing Lipitor for cholesterol. Lorex can make a profit by selling Lipitor: A) in the short run but not in the long run because new firms will […]

If the car manufacturer enjoys economies of scale, then an increase in the number of cars manufactured will lead to a(n): A) decrease in average cost. B) increase in average cost. C) constant average cost. D) decrease in total cost. […]

Recall the Application about low-price guarantees and the prices of tires to answer the following question(s). Recall the Application. A study of the retail tire market suggests that prices are ________ in markets where firms offer low-price guarantees. A) generally […]

At what point should Jasper Johns consider painting his own house? A) if the house painter charges $500 per day and takes 20 days to paint the house B) if the house painter charged $2,500 per day, since that is […]

Suppose the price of a liter of soda is $2. If Sara is willing to pay $3 for that liter of soda, her consumer surplus is: A) $0. B) $1. C) $2. D) $3. Firms in a cartel usually charge: […]

Being self-sufficient in the production of everything we need is efficient. Suppose that Jack promises that if Jill chooses the high price, he will too. Jack has an incentive to cheat on the agreement. Answer: TRUE An income effect comes […]

Scarcity is a situation in which resources are limited in quantity and can be used in different ways. The long-run supply curve can be used to determine the long-run price after an increase in demand. Answer: TRUE Free trade will […]

The ________ problem of public goods occurs because people can enjoy the benefits of these goods even when they do not have to pay for them. A) moral hazard B) free-hand C) free-rider D) external cost The threat of punishment […]

Oligopolies are characterized by many firms. In an oligopolistic market, the government may limit the number of firms in a market by issuing patents. Answer: TRUE Monopolistically competitive firms tend to operate on the positively sloped portion of their average […]

Daily Output of Scotland and Poland Table 18.1 Refer to Table 18.1. Scotland has a comparative advantage in: A) accordions. B) bagpipes. C) both accordions and bagpipes. D) neither accordions nor bagpipes. Lemon laws that allow consumers to return low-quality […]

Recall the Application. In most cases where satellite TV service is introduced in an area with cable TV service, the quality of the cable TV service usually: A) increases. B) decreases. C) initially increases, then decreases. D) is unaffected. Recall […]

Which of the following are examples of goods and services that have been subject to maximum prices or may be subject to maximum prices in the near future? A) gasoline B) rental housing C) medical goods and services D) all […]

Figure 6.8 shows the market for taxicab services in a small town. If the government limits taxicab services to 20 per day, then producer surplus will: A) increase by $10. B) increase by $6.25. C) decrease by $3.75. D) increase […]

If supply is low relative to demand, then we can expect the equilibrium wage to be: A) demand-determined. B) relatively high. C) relatively low. D) neither high nor low, but very volatile. Which of the following is true for both […]

Total variable cost: A) increases as output increases. B) is constant as output increases. C) decreases as output increases. D) is lowest for labor-intensive technologies. Which of the following strategic behaviors do firms in an oligopoly market usually engage? A) […]

The monopolistic competitive industry in Figure 11.5 will tend to: Figure 11.5 A) contract. B) remain the same size. C) expand. D) go out of business. An example of a public good is: A) a levee. B) a monopoly. C) […]

In 1995, the United States threatened to impose 100 percent tariffs on ________ from ________ if it didn’t loosen its protectionist policies. A) luxury cars; Japan B) auto parts; Japan C) brandies; France D) light trucks; Germany When wages increase […]

In Figure 2.3, an efficient production point on production possibility curve YZ is: A) point A. B) point B. C) point C. D) none of the above. An external cost of production is: A) a cost incurred by someone other […]

If firms follow a low-price guarantee strategy, the price that will prevail in the market will be closest to: A) the price a monopolist will pick. B) the price that a perfectly competitive firm would pick. C) the duopoly price. […]

How can an increase in the minimum-wage affect the restaurant industry? A) It can create a shortage of restaurant workers. B) It can lead to an increase in prices for restaurant meals. C) It can create a surplus of restaurant […]

Diseconomies of scale can occur for: A) coordination problems. B) minimum efficient scale problems. C) increasing input costs. D) A and C are correct. What was the mistake that the governments the U.K. and France make when they subsidized the […]

The short-run labor demand curve is: A) more elastic than the long-run labor demand curve. B) less elastic than the long-run labor demand curve. C) either more or less elastic than the long-run labor demand curve. D) perfectly elastic (horizontal). […]

Suppose that a market for a product is in equilibrium at a price of $3 per unit. At any price below $3 per unit: A) there will be an excess demand for the product. B) there will be an excess […]

If the demand for jelly decreases, and the price of grapes (used to make jelly) rises: A) the equilibrium price of jelly rises and the equilibrium quantity of jelly might rise or fall. B) the equilibrium price of jelly falls […]

The WTO and GATT promote trade by: A) reducing tariffs. B) directing trade. C) setting the prices of goods sold internationally. D) all of the above Figure 12.1 shows a successful price-fixing arrangement (cartel) between two identical firms. When the […]

Neuron activity in the insula represents the benefit of buying a product. Utility is not easy to measure and quantify. Answer: TRUE Oligopoly arises with scale economies that are not large enough to cause a natural monopoly. Answer: TRUE In […]

A workplace externality benefits fellow workers. The current means of regulating automobile emissions is “command-and-control.” Answer: TRUE Specialization in production will increase total output. Answer: TRUE If the price elasticity of demand is .5 and the price elasticity of supply […]

Figure 10.6 shows prices, demands, and cost data for the only restaurant in a small town. What is its profit from senior customers under the senior discount policy of a $7 senior price and a $10 non-senior price? A) $1,200 […]

A monopolistically competitive firm maximizes profit by producing where marginal revenue is less than marginal cost. In order to get his bachelor’s degree, Timothy gave up an offer for a full time job as a bartender. Therefore, Timothy incurred an […]

Refer to Figure 10.6. The profit-maximizing (or loss-minimizing) level of output: A) is 10,000. B) is 0. C) is approximately 15,000. D) is approximately 25,000. A possible reason a nation might impose a protectionist policy such as a tariff is […]

The summation of all individual firm marginal cost curves above the minimum of the average variable cost curve: A) forms a curve that is usually downward sloping. B) defines the relationship between price and demand. C) defines the relationship between […]

Refer to Table 12.2. Jeri and Tom are arrested for having committed a crime. They are being interrogated individually and need to decide if they should confess or not confess. The police have enough information to put them in jail […]

Which of the following is an example of a marginal question? A) How much will my chances of finding a job improve if I raise my GPA from a C to a C+ grade average? B) What is the average […]

One advantage that a command-and-control policy has over a pollution tax is that: A) we will be able to accurately predict the amount of pollution that will occur. B) it generates a lower level of pollution at a lower cost. […]

Figure 4.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $7, we would expect that: A) demand will decrease until quantity demanded equals quantity supplied. B) supply will increase until quantity demanded equals quantity […]

A minimum wage above the equilibrium wage leads to an excess quantity supplied of labor. The government uses the buying power of wages rather than face value or nominal value in reporting changes in “real wages” in the economy. Answer: […]

The cross-price elasticity of demand between bananas and apples is most likely: A) positive. B) negative. C) zero. D) More information is needed to determine. In a thin market: A) only high-quality goods are sold. B) some high-quality goods are […]

If government sets a minimum price above the equilibrium price: A) some consumers gain at the expense of producers and the total surplus decreases. B) some consumers gain at the expense of producers and the total surplus increases. C) some […]

The marginal benefit of someone’s search depends on her/his discovered price. Information goods such as a music video have an L-shaped average cost curve. Answer: TRUE If marginal utility is positive consuming an additional unit of a product will cause […]

If Eddie can produce 40 milk shakes or 20 banana splits in an hour, and Tina can produce 30 milk shakes or 16 banana splits in an hour, then Eddie has a comparative advantage in producing milk shakes. If Xerox […]

Refer to Figure 12.8. If both firms follow their dominant strategies, Firm A will earn profits equal to: A) $500. B) $700. C) $200. D) $100. Suppose that people expect that the price of orange juice will rise next month. […]

A perfectly elastic demand curve is shown as a: A) horizontal line. B) vertical line. C) positively sloped line. D) negatively sloped line. When computing percentage changes, using the simple approach results in increases and decreases which are: A) identical. […]

Figure 14.1 represents the market for used bikes. Suppose buyers are willing to pay $200 for a plum (high-quality) used bike and $50 for a lemon (low-quality) used bike. If buyers have pessimistic expectations about the used bikes in the […]

Which of the following products has elastic demand? A) water B) coffee C) cars D) all ice cream As firms enter a monopolistically competitive market in the long run: A) price increases, the market quantity demanded increases, and the quantity […]

The problem with using voluntary contributions to support a public good is known as the ________ problem. A) user B) utility C) free-rider D) external cost Figure 8.3 shows a firm’s marginal cost, average total cost, and average variable cost […]

Private goods can have external benefits. Labor skills are determined by innate ability, education and work experience. Answer: TRUE A maximum price below the market equilibrium price will raise the total surplus of the market. Answer: FALSE The main purpose […]

Which of the following would be typically classified as a public good? A) postal delivery B) national defense C) toll roads D) college education Tie-in sales: A) are legal under the Clayton Act. B) are the same as predatory pricing. […]

With average cost pricing the firm in Figure 13.3 would be: A) making a zero economic profit. B) losing money. C) making a positive economic profit. D) shut down. Joe runs a restaurant. He pays his employees $200,000 per year. […]

The government plays no role in a market-based economy. Economists argue that individuals should continue to consume until total benefit equals total cost. Answer: FALSE The utility-maximizing rule says that a person will maximize utility by choosing goods so that […]

Market equilibrium guarantees that all mutually beneficial transactions take place. The conventional way to regulate a natural monopolist is to force it to charge a price equal to marginal cost. Answer: FALSE Economic cost differs from accounting cost because accountants […]

An increase in demand will lead to a decrease in supply in the long run. Higher wages could lead workers to choose to work less hours. Answer: TRUE The price elasticity of supply is generally greater than zero. Answer: TRUE […]

Suppose Belgium produces only two goods, chocolate and lace. If Belgium has a comparative advantage in lace, a move toward free trade will: A) benefit chocolate workers, harm lace workers in the short run, but benefit the nation as a […]

Figure 8.3 shows a firm’s marginal cost, average total cost, and average variable cost curves. At Q=100, the average fixed cost is: A) $30. B) $40. C) $50. D) $60. Markets exist: A) so people can buy and sell things. […]

A U.S. company is attempting to cut costs by shifting some of its services to Thailand. This process of shifting production of products or services overseas to cut costs often results in: A) greater potential for market failure for those […]

Resources are all of the following EXCEPT: A) unlimited and in abundance. B) the things we use to produce goods and services. C) limited in quantity and can be used in different ways. D) scarce and therefore requiring choices to […]

Suppose that the price of a coffee mug is $2. Lee’s marginal cost of producing coffee mugs $0.50 for the first mug, Tammy’s marginal cost of producing coffee mugs is $1 for the second mug, Stan’s marginal cost of producing […]

Joe runs a business and needs to decide how many hours to stay open. Figure 2.4 illustrates his marginal benefit of staying open for each additional hour. Suppose that Joe’s marginal cost of staying open per hour is $40. How […]

Entry leads reduces firm profits because it leads to a lower price. The earned income tax credit has been a successful anti-poverty policy by encouraging participation in the workforce. Answer: TRUE The firm faces the market demand curve in a […]

According to the Application, a recent study of search behavior for liquid detergent showed that a doubling of income ________ the cost of search and ________ the amount of searching by about 14 percent. A) increased; increased B) increased; decreased […]

An Internet company wants to increase the consumption of Internet packages by 15%. The price elasticity of demand for Internet packages is 2. The telephone company should: A) lower the price of Internet packages by 30.0%. B) lower the price […]

If the price of hotdogs are expected to decrease in the future, then: A) the current demand for hotdogs will increase. B) the current demand for hotdogs will decrease. C) the current quantity demanded for hotdogs will decrease. D) the […]

Refer to Figure 1.1. The relationship between hours worked and income, as shown by the graph in Figure 1.1 is: Figure 1.1 A) negative. B) positive. C) nonlinear. D) exponential. Recall the application on happy hour pricing, each bar has […]

Recall the application about the California kiwifruit market and the “lemons” problem. If the problem of adverse selection exists in the kiwifruit market, we can expect the quality of fruit to be ________ and the price to be ________. A) […]

Consider the data in Table 16.2. Both firms can benefit if Firm A sells its pollution permit allowing it to generate 100 gallons of wastewater to Firm B for: Table 16.2 A) a price between $7 and $12. B) a […]

The protection of the earth’s ozone layer is an example of a public good. If the opportunity cost of 1 wristwatch is 4 wall clocks in Japan and 2 wall clocks in Germany, it makes sense for Japan to produce […]

A decrease in the cost of production will shift the supply curve down and to the right. If the marginal cost is increasing over a given output range, the average total cost must increase. Answer: FALSE The principles of comparative […]

If the price elasticity of supply of CDs is 0.8, then the supply is inelastic. If the price elasticity of demand for peanuts is 0.4, then the demand is inelastic. Answer: TRUE Recall Application 2, “The Market for Meteorites,” to […]

Predatory pricing occurs when a monopolist charges a: A) price above average total cost. B) price above average variable cost. C) low price to drive out competition, then charges a high price. D) high price to drive out competition, then […]

Table 14.5 Table 14.5 contains data on the marginal benefit of searching for a lower price for a digital camera. The price of the camera ranges from $100 at the lowest price store to $140 at the highest price store. […]

Prices below the free market equilibrium price are inefficient because the willingness to pay by someone to consume an additional unit ________ the marginal cost to someone for producing that unit. A) exceeds B) is less than C) equals D) […]

A Major League Baseball player signs a contract that pays $27 million over 5 years. The $27 million is the contract’s ________ value. A) real B) implicit C) external D) nominal The word “monopolistic” in the label “monopolistic competition” refers […]

Because resources are limited: A) only the very wealthy can get everything they want. B) firms will be forced out of business. C) the availability of goods will be limited but the availability of services will not. D) people must […]

The incomes earned by the top one percent in the U.S. has decreased in recent years. The long-run supply curve is upward sloping in an increasing cost industry. Answer: TRUE Recall the example about the dam and the farmers, the […]

Refer to Table 7.2. The marginal utility of the fourth slice of pie per day is: Table 7.1 A) 20. B) 75. C) 15. D) 3. The price of apples increases from $1 to $1.10. At the same time, the […]

Increased international trade results in greater incomes for low-skilled workers. The poverty rate in the United States is lowest for whites. Answer: FALSE A dominant strategy is one that is the best choice regardless of other firms’ decisions. Answer: TRUE […]

An increase in the minimum wage will have a large effect on the number of workers employed in minimum wage occupations if: A) demand for workers is elastic. B) demand for workers is inelastic. C) supply of workers is elastic. […]

Suppose that the price of a donut is $1 each. Lorena is willing to pay $2 for the first donut, Ricky is willing to pay $1.80 for the second donut, Jennifer is willing to pay $1.50 for the third donut, […]

A product produced in the home country and sold in another country is an export. As an individual consumes more of a good, total utility increases and marginal utility decreases. Answer: FALSE The house slipper industry is an example of […]

Suppose that it would cost a firm $9 million to develop a new drug. In the absence of a patent, other firms will be able to copy and bring to market a generic equivalent of the drug in three years. […]